• £5.35 million conditionally raised in placing at 1p per share
• Sokolovskoe appraisal well (Well-13) to intersect five zones of interest
• Rig availability good with early well spud possible
• Licence area extension includes full extent of Sokolovskoe Field
Matra is pleased to announce a two stage placing of 535,000,000 new ordinary shares at 1p per share in order to raise £5.35 million (the “Placing”). Completion of the first stage of 123,050,000 new ordinary shares, raising £1,230,500, is expected on 10 July 2009 with the remaining 411,950,000 new ordinary shares to be issued, subject to shareholder approval at an Extraordinary General Meeting expected to be held on 24 July 2009.
The majority of the funds raised (approximately £3.88 million) will be used to drill Well-13, the up-dip appraisal well to the Sokolovskoe discovery well on the Arkhangelovskoe License in Orenburg, Russia. The remainder of the funds raised will be applied for working capital, overheads and the costs of the Placing.
Delek-International Energy Ltd has subscribed for 29.3% of the shares being issued in the Placing. Macquarie Bank Ltd has subscribed for 28% of the shares being issued which, on completion of the Placing, will result in a 15% holding in Matra, subject to shareholder approval. The Placing was oversubscribed.
Arkhangelovskoe License
The Arkhangelovskoe License is held 100% by Matra’s wholly owned subsidiary, “OOO” Arkhangleovskoe. This license has recently been extended to the North to include the full extent of the Sokolovskoe Field.
On the basis of the full extent of the Sokolovskoe Field and an extensive review of the geology of the area, all local well data, newly acquired seismic data and reprocessed older data, Matra has estimated Recoverable Contingent Resources as follows:
Million Barrels
STOOIP
Low: 75
Best: 217
High: 485
Recoverable
Low: 15
Best: 65
High: 194
This estimate refers only to the Aphonenski formation which was tested and produced in Well-12. Well-13 is forecast to intersect this formation some 52m higher than it was encountered in Well-12 and will be the first appraisal well on the structure.
Well-13
Well-13 will be drilled to appraise the crest of the Sokolovskoe Field. The geological model shows that locally, such carbonate reef structures exhibit better reservoir parameters when drilled on the crest.
In addition to testing the main Aphonenski Reservoir that was productive in Well-12, Well-13 will also test:
• the lower Aphonenski formation which proved to be water bearing in Well-12 but is predicted to be above the oil-water contact (as seen in Well-12)
• the Franski layer which appeared to be oil bearing on logs in Well-12 but was not tested
• two higher intervals which were encountered outside of structural closure in Well -12 but are expected to be within closure in Well-13.
These four additional targets for the well provide for additional exploration upside.
A graphical representation of Well-13 and the intervals to be tested are shown on our website.
Matra has been in discussions with various drilling contractors locally in Orenburg and rig availability is currently very good. With funding secured (subject to shareholder approval at the EGM) Matra expects to finalise a rig contract quickly and mobilise the rig to the location. Mobilisation should take about one month and the well is expected to take around 120 days to drill. The cost of the well is estimated at US$4.5 million (excluding 18% VAT).
Funds are also now available to complete and acidise the well and to provide for some onsite production equipment.
Matra’s Managing Director, Peter Hind, said:
“We are delighted to have received support from existing and new shareholders for the fundraising and look forward to drilling the appraisal well on the crest of the Sokolovskoe Field as soon as possible.
Whilst the recent market conditions have inevitably caused us some delays, we have been able to put that time to good use with internal technical work and we will also benefit from reduced drilling costs.”