Matra Petroleum plc provides an update on its operations in Russia on the Arkhangelovskoe License in Orenburg.

Arkhangelovskoe – 12 discovery well The 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 optimise well production with appropriate wellbore treatments and pump installation.

Arkhangelovskoe – 11 exploration well 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 120days to drill evaluate and is targeting 5 horizons in the Carbonferous and Devonian below 3100m. The well is expected to spud in about 12 days time.

Matra’s Managing Director, Peter Hind said, “We expect to commence production later this month. 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.”

OOO Arkhangelovskoe is a 100% owned subsidiary of Matra and owns 100% of the rights attributable to the Arkhangelovskoe License.