Matra Scores Successful Acid Treatment at Arkhangelovskoe - 12

Matra Petroleum plc announced that the Arkhangelovskoe - 12 discovery well on the Arkhangelovskoe License in Orenburg, Russia, has been successfully treated with acid to remove formation damage.

The acid treatment was completed on May 21 and followed re-perforation and retesting of the well. The well cleaned-up and produced strongly after the treatment and was flowing at a stabilized rate of 540 bopd on a 5mm choke with a flowing wellhead pressure of 1000psi on May 25. A series of flow tests were then conducted using a series of increasing choke sizes. The last of these flow periods was on a 7mm choke and the well flowed at a stabilized rate of 820 bopd with a flowing wellhead pressure of 650psi. The well has now been shut-in at the start of a 24 hour pressure build-up survey. Data acquired during this test combined with the pressure data will confirm the full well potential under natural flow and with artificial lift (pump). The well will be returned to production at the completion of the pressure survey.

"The acid treatment has proved a great success in removing the formation damage identified previously as restricting the flow rate," said Peter Hind, Matra's Managing Director. "With relatively high flowing wellhead pressures the well is capable of higher rates under natural flow conditions. Analysis of the current test program will allow us to assess that potential, to calculate the benefit of installing a pump in due course and to define the best production strategy for this and future wells.

"The combination of a substantially better well rate and current oil prices not only means that we will be generating meaningful cash flow in the short term but has important implications for the value of the full field development."

OOO Arkhangelovskoe is a 100% owned subsidiary of Matra and owns 100% of the rights attributable to the Arkhangelovskoe License. On 6 November 2007 Matra announced it had made an oil discovery at Arkhangelovskoe-12, the Company's first exploration well in Russia.