Matra Spuds its First Well in Russia

Matra Petroleum has spudded its first well of a four well drilling program in Russia on the Arkhangelovskoe License, 20kms north of Orenburg city. The well, Arkhangelovskoe - 12, in which Matra has a 100% interest via its Russian subsidiary "OOO Arkhangelovskoe", will be drilled using Orenburg Drilling Company's rig 3-D and will test the Sokolovskaya structure.

The well spudded on July 20th, and drilling is expected to take approximately 120 days to reach a total depth of 3900m, testing up to five potential reservoir targets within the Permian, Carboniferous and Devonian formations that are productive in nearby fields. The well is expected to cost approximately $4.6 million.

Extensive coring and open-hole testing is planned in the zones of interest, the first of which are estimated to be encountered after approximately 65 days.

Peter Hind, Matra's Managing Director said:

"This is a highly prospective well and success will have a huge impact on the company. Having acquired the Arkhangelovskoe License as recently as March 2007, I am delighted that we have been able to move quickly to contract a rig and to be spudding our first ever well in Russia."