Matra Defines Two Drilling Targets for Hungarian Program

Matra Petroleum

Following evaluation of existing 3D seismic data, Matra Petroleum has defined two drilling targets on its 100% owned Inke Concession in Hungary - an appraisal of a 1983 undeveloped gas discovery and an exploration well to investigate a gas prospect. Drilling on the first target is expected to commence in early 2007.

Both targets are close to existing infrastructure.

The first target is an appraisal of the Somogysamson gas discovery made by a previous operator of the concession which tested at a cumulative rate of 1.54mmscfd in the Som-3 well drilled in 1983. There are indications that the well was damaged during drilling and therefore did not reach its full potential. The reprocessed and reinterpreted 3-D seismic shows a thickening of the Miocene reservoir section at the proposed location. The reservoir depth is at approximately 1600m and the well would be drilled to approximately 1700m.

The second target is a smaller Miocene prospect but represents a thicker channel sand deposit within a 4 way dip closure - both the channel and closure being well defined by seismic. This thicker projected reservoir section provides a seismic attribute (AVO) response that may be indicative of the presence of hydrocarbon gas. The reservoir depth is at approximately 1200m and the well would be drilled to approximately 1300m.

The Inke Concession is very large at 2,297 square kilometers of which 3D seismic covers (only) 110 square kilometers. Geological analysis of this area of the block has provided for a much better understanding of the underexplored areas within the concession not covered by 3-D seismic. As a result a number of prospects in 2 areas have been identified on existing 2D seismic. Further technical work is ongoing in these areas and it is likely that further seismic will be acquired shortly.

Matra is currently applying for necessary approvals for these wells and reviewing rig availability. Despite increased drilling activity in Hungary Matra expects to drill the first of these wells in early 2007.

Commenting on the program Peter Hind, Matra's Managing Director said:

"Not only has the seismic evaluation work defined the short term drilling program but it has also revealed the potential of the other less explored areas of the Concession that will lead to increased drilling activity in due course".