Matra owns 100% in the Arkhangelovskoe Production licence through its 100% owned Russian subsidiary 'OOO' (Limited Liability Company) Arkhangelovskoe.

The Arkhangelovskoe Production licence covers an area of 87.68 sq km and is 20-30kms to the North of the city of Orenburg (Figure 1). The licence is within the oil rich Volga-Urals basin and lies adjacent to existing oil fields and close to the super-giant Orenburg gas field.

Operational Update

Well-13 Periodic short flows of well-13 have shown that the water zone has been successfully isolated and only oil is now flowing. The well is flowing oil at a rate below 100 bpd. Now the water zone has been successfully isolated; a further acid treatment may be required to improve production.

After a further flow period the well will be shut-in in order to acquire pressure build-up data. This data will allow an estimation of the well's flow potential.

Well-12 The side track of well-12 is now well underway with the rig fully operational on site.

Matra's Managing Director, Peter Hind, said, 'The holiday season in Russia combined with extraordinary weather conditions has caused us some delays but substantial progress has been made on both wells. It is very encouraging that the water zone has been isolated in well-13. The very nature of remedial cementation means that the productive oil zone will have been partially plugged by cement too. We will now acquire pressure data that will allow us to estimate the well's true potential.'

Tags: Matra Petroleum