MTA.L Regulatory News (MTA)

30 Apr 2008 07:02

Matra Petroleum PLC30 April 2008 PRESS RELEASE For immediate release: 30th April 2008 Matra Petroleum plc ("Matra" or the "Company") Update - Hungary Matra Petroleum plc (AIM:MTA), the oil and gas E&P company focused on CentralEurope and Russia announces the following operational update for Hungary: Matra is pleased to announce that its Hungarian subsidiary has signed a contractwith Rotary Drilling of Hungary for the drilling of two exploration wells on theInke Concession in Hungary. Rotary drilling has confirmed the availability ofits rig 42 at the completion of operations at its current location - this iscurrently anticipated by mid-May. The rig will be used to drill Pamuk-1 and Polany-1. These wells are locatedwithin the 2007 3-D seismic survey on the north eastern sector of theConcession. Pamuk-1 will be drilled to a depth of 2000m and is expected to take20 days to drill and log. Polany -1 will be drilled to a depth of 1600m and isexpected to take 18 days to drill and log. The total cost of the two wellprogramme is $5 million gross ($2 million net to Matra). Both prospects exhibit strong Direct Hydrocarbon Indicators (DHI's) based onmodelling of the 2007 seismic survey. At the Company's request Senergy conducted an independent review of the twoprospects. Their findings are summarised as follows: Pamuk-1Estimate of Prospective Resources (Billions of Standard Cubic Feet) - BCF Low Best High Estimate Estimate Estimate Gross (100%) 8 27 36Net Attributable (40%) 3.2 10.8 14.4Chance of Success - 33% An economic assessment of the potential worth in the case of discovery,subsequent successful appraisal and development at the Best Estimate levelindicated the following valuation: Estimated Unrisked after tax Net Present Value of the Best Estimate: NPV 10% $ millionsGross (100%) 94.0Net Attributable (40%) 37.6 Polany -1Estimate of Prospective Resources (Billions of Standard Cubic Feet) - BCF Low Best High Estimate Estimate EstimateGross (100%) 3.4 16 30Net Attributable (40%) 1.36 6.4 12 In addition Senergy indicated the possibility of an additional 3 stacked targetsalso identified separately by DHI's that are not included in the above volumeestimate. Chance of Success - 28% An economic assessment of the potential worth in the case of discovery,subsequent successful appraisal and development at the Best Estimate levelindicated the following valuation: Estimated Unrisked after tax Net Present Value of the Best Estimate: NPV 10% $ millionsGross (100%) 49.0Net Attributable (40%) 19.6 Both sets of economics assumed: • Successful discovery, appraisal and development with first gas in mid 2009 • A notional gas development using estimated capital and operating costs only • A constant gas price of $11/mcf. • After tax NPV calculated at 10% discount rate Peter Hind, Matra's Managing Director said: "The combination of good fiscal terms in Hungary and the proximity toinfrastructure means that discoveries of this size can have a significant impactfor Matra. The Senergy report confirms our own view of the prospectivity of theInke Concession." Matra has a 40% interest in the Mezocsokonya Exploration License and in the InkeConcession. The information in this release that relates to technical matters has beenprovided by Senergy Limited and reviewed by Dr Neil Hodgson (BSC, PhD) Matra'sExploration Director, a Petroleum Geologist with more than 20 years experienceand who is a Fellow of the Geological Society and a member of the PetroleumExploration Society of Great Britain (PESGB). Estimates of Prospective Resources have been made in accordance with Society ofPetroleum Engineers (SPE) definitions. For further Information, please contact: Matra Petroleum www.matrapetroleum.comPeter Hind, Managing Director +44 (0) 7990 807855Neil Hodgson, Exploration Director +44 (0) 7973 342822 Aquila Financial Limited www.aquila-finacial.comPeter Reilly +44 (0) 118 979 4100 Matra's nominated Advisor is RFC Corporate Finance Ltd -Contact: Steve Allen +618 94802500 Glossary SPE - Society of Petroleum Engineers Prospective Resources are "those quantities of petroleum which are estimated, ona given date, to be potentially recoverable from undiscovered accumulations." $ - means United States dollars Notes to Editors: Matra Petroleum plcMatra is actively exploring both Hungary and Russia and is constantly reviewingnew opportunities for investment in both those areas and the other countries ofCentral and Eastern Europe. Central Europe provides significant opportunities in proven oil and gasproducing provinces in an increasingly open, stable and attractive commercialenvironment. The dependence upon oil and gas imports from other areas hasheightened the need for Central European countries to develop domesticresources. By contrast, European Russia has substantially greater oil and gas reservestypically encountered in smaller accumulations than seen in the Eastern regionsof Russia. In addition to opportunities to acquire known fields requiringfurther development and optimisation there are also low risk exploration playsthat offer potentially high rewards. Matra Petroleum shares are traded under the symbol MTA on AIM, a market operatedby London Stock Exchange. This information is provided by RNS The company news service from the London Stock Exchange