Matra to Increase Production Activity in Russia for 2008

Matra Petroleum's Arkhangelovskoe-12 discovery well has now been completed for oil production, and the drilling rig is being moved off the location. At the same time a temporary production system is being installed at the well-site together with oil storage facilities to enable the well to produce and the resulting production to be trucked to the nearby rail terminal and sold.

For operational and safety reasons the well may only be perforated and produced once the rig has been moved off location and the temporary production equipment installation completed. Initial priorities for the well will be to fully test the producing interval and to obtain additional pressure and production data before considering how best to optimize well production with appropriate wellbore treatments and pump installation.

The drilling rig (from Orenburg Drilling Company) is moving to the next exploration well location Arkhangelovskoe-11 to test the undrilled Laptevskaya structure. The well which will take up to 120 days to drill evaluate and is targeting 5 horizons in the Carbonferous and Devonian below 3,100 meters. The well is expected to spud in about 12 days time.

"We expect to commence production later this month," said Matra Managing Director Peter Hind. "We completed our Russian acquisition in late April this year - to have completed our first well and start production within 8 months will be an outstanding achievement. 2008 will see increasing levels of activity in Arkhangelovskoe for Matra."