Matra Acquires First Russian License

In its first deal in the Russian Federation, Matra Petroleum, in return for the issue of 55,000,000 new shares, is to acquire the Arkhangelovskoe Exploration License that is in close proximity to existing production near Orenburg.

The first exploration well is planned to commence in June 2007. Matra has also agreed, subject to shareholder approval, to issue 135,000,000 new ordinary shares at 4.5p per share and 24,000,000 options exercisable at 8p/share, to Delek-International Energy Limited to raise £6.075 million to fund the initial drilling.

Independent consultant Senergy Limited, has assigned an Expected Monetary Value of US$78 million to just one of several prospects in the license.

Russian Acquisition

Matra Petroleum plc has entered into an agreement to acquire 100% of the Russian company 'OOO' Arkhangelovskoe. This company is registered in the Orenburg Oblast and owns 100% of the rights to the Arkhangelovskoe and is the designated Operator. Exploration License situated some 20-30kms from the city of Orenburg. The city of Orenburg is some 1200kms SE of Moscow. The License covers 158km2 and is in close proximity to existing production.

The acquisition is being made from the owners of Kompania Gaz I Neft who have been active in Orenburg for several years and produce from an adjacent license. The consideration for the acquisition is 55,000,000 Matra shares.

The license is valid until August 2009 and has a requirement to drill 4 wells. The first well will test the Sokolovskaya structure to a depth of approximately 3900m. Drilling is expected to commence in June and take approximately 4 months. Technical review of the other prospects on the license is continuing in order to prioritize the forward drilling schedule.

Consultants Senergy Ltd has completed an independent evaluation of the Sokolovskaya prospect, which is one of several on the block.

Prospective recoverable resources were estimated by Senergy Limited, for the Sokolovskaya prospect, using both deterministic and probabilistic methods and their results were as follows:

                    Million Barrels Prospective Recoverable Resources
                        Low          Best                 High
                        Estimate     Estimate             Estimate

Deterministic              4.1             32.3            114.1

Probabilistic             16.1             32.1             54.7

Senergy's risk assessment concluded that there is an 80% chance of finding a commercial discovery and a 40% chance of finding their best estimate of prospective recoverable resources of 32 million barrels.

Senergy's estimate of the Net Present Value for the best estimate of 32 million barrels is US$93 million using a discount rate of 10% and a flat US$50/barrel oil price.

Their assessment of Expected Monetary Value (EMV - risked valuation) for the Sokolovskaya prospect alone is US$78 million.

Share Placement

Matra has entered into an agreement, subject to shareholder approval, with Delek-International Energy Ltd to issue 135,000,000 new shares in Matra at an issue price of 4.5p/share raising a total of £6.075 million, which will be used to fund the initial drilling in Orenburg. This will give Delek a 29.9% holding in the expanded share capital of Matra. Delek will also receive 24,000,000 options to subscribe for new shares in Matra at an exercise price of 8p/share and valid until February 15th 2009. Delek-International Energy Ltd is a subsidiary of Delek-Group an Israeli conglomerate with a market capital in the region of US$2.3 billion. Delek holds interests in upstream oil and gas assets in Israel, Vietnam, Guinea Bissau and the USA.

Delek will be invited to nominate one non-executive Director to the board of Matra.

The agreement with Delek is subject to completion of the acquisition of OOO Arkhangelovskoe, which is anticipated shortly. The agreement is also subject to Matra shareholder agreement and notice of an EGM to be held on 26th April 2007 will shortly be dispatched to shareholders.

Peter Hind, Matra's Managing Director said:

"This acquisition in Russia complements our position in Hungary and importantly provides shareholders with exposure to near term drilling of the Sokolovskaya prospect. It is extremely gratifying to see the value attributed to this asset in Senergy's review. The placement with Delek confirms that this acquisition is both value adding and highly prospective.

"Delek's investment in Matra illustrates their confidence in Matra's ability not only in this exceptional opportunity but also in generating further value adding acquisitions in the future.

"There are clear benefits in having Delek as a significant shareholder and providing input to the board. We look forward to working more closely with them in the future.

"The increase in market capitalization and additional funding puts Matra in an ideal position to take advantage of other nearby opportunities that are under consideration."