Matra Petroleum PLC - Update - Russia and Hungary

RNS Number:1128R
Matra Petroleum PLC
31 March 2008

PRESS RELEASE

For immediate release: 31st March 2008

Matra Petroleum plc ("Matra" or the "Company")

Operational Update - Hungary & Russia

Matra Petroleum plc (AIM:MTA), the oil and gas E&P company focused on Central
Europe and Russia announces the following operational update in Hungary and
Russia:

Hungary

• Final preparations for the two well drilling programme on the Inke
Concession are underway. The first well Pamuk K-1 is expected to commence at
the end of April/beginning of May utilising a rig provided by Rotary
Drilling of Hungary. The second well Polany E-1 is expected to follow-on
directly from Pamuk K-1. The wells will be drilled to 2000m and are expected
to take approximately 20 days each to drill. The wells will test Pannonian
sandstones that are highlighted by the Direct Hydrocarbon Indicator (DHI)
modelling as potentially gas bearing.

Russia

• Arkhangelovskoe -11: Drilling is continuing and has reached 3,323m. The
well is targeting 5 horizons in the Devonian that should be encountered
shortly.

• Arkhangelovskoe -12: Due to the early onset of the annual thaw in
Orenburg, access to the wellsite for heavy transport, including acid
treatment equipment and road tankers, has been restricted for several weeks.
There is a 6km section of non-metalled road providing access to well -12.
Access, during the annual thaw, to this road is typically restricted for
heavy transport for a period of up to a month. Historically the thaw has
begun in mid-March but this year started several weeks early and has been
compounded by the unusually high rainfall. Road repairs to allow equipment
access for the acid treatment will take place as soon as the weather allows
with the operation following shortly after.
• Production from the well has remained steady at around 100 barrels per
day. As access for road tankers was disrupted by the early thaw, production
was restricted between 20th and 29th March due to onsite storage
limitations. This period was utilised to replace the leased temporary
production facility with a permanent installation. Export by road tanker has
now recommenced..

Peter Hind, Matra's Managing Director said:

"With drilling starting shortly in Hungary and our continued drilling in Russia
we are entering the busiest stage of our 2008 exploration programme. We look
forward to reporting progress over the next few months.

Given the early thaw in Orenburg we took the decision to delay the acid
treatment on well-12 and avoid the risk of getting heavy equipment stuck onsite
and having to bear potentially significant extra costs. Once field development
begins these access roads will be metalled to ensure continuous access."

Matra has a 40% interest in the Mezocsokonya Exploration License and in the Inke
Concession. Horizon Hungarian Energy (HHE), a subsidiary of Aspect Holdings and
a leading explorer in Hungary owns the remaining 60%.

Matra has a 100% interest in the Arkhangelovskoe License in Russia, held through
its wholly owned Russian subsidiary.

For further Information, please contact:

Matra Petroleum www.matrapetroleum.com

Peter Hind, Managing Director +44 (0) 7990 807855
Neil Hodgson, Exploration Director +44 (0) 7973 342822

Aquila Financial Limited www.aquila-finacial.com
Peter Reilly +44 (0) 118 979 4100

Matra's nominated Advisor is RFC Corporate Finance Ltd -
Contact: Steve Allen +618 94802500

This information is provided by RNS
The company news service from the London Stock Exchange

END
MSCDXGDXGUXGGIG