Shares in Matra Petroleum (LON:MTA) jumped by 21% to 1.8p in early trading today after the oil and gas exploration group set out its plans to begin production in August from well-13 on the Sokolovskoye field in Russia. Late last month Matra revealed disappointing initial findings from well-13, which followed a similar lacklustre results from well-12 in November 2007. However, after analysing the latest well data, the company has decided that while the reservoir quality might be poor, and at a deeper level than previously anticipated, the indications are that the field is likely to cover a greater area than originally estimated. The verification of this by seismic remapping has already begun, and this process is likely to take several weeks.
As a result of the latest findings, Matra is also set to carry out workover operations on well-12 with the aim of starting production from that well in mid August as well. Well-12 had initially demonstrated the ability to produce oil at rates exceeding 800 barrels of oil per day however, rising levels of water production through 2008 led to it being suspended awaiting a well workover. Matra noted that the presence of oil in well-13 at a deeper level than seen in well-12 suggested that water produced from well-12 was likely to come from a source other than the main oil reservoir. In turn this means that it is more likely that oil production can be restored by workover of well-12.
The added that having complied with all the requirements for the issue of a Production Licence for the field, it was in constant contact with the authorities and was confident that the Production Licence would be issued shortly.
Matra's managing director, Peter Hind said: “The results of this well show that we have an oilfield of greater areal extent but lesser thickness and quality than our pre-drill estimates. Our priorities are: to put A-13 on production; to obtain the Production Licence; to re-establish production from well-12 and to remap the field using new data obtained. Although the results from the A13 well were not as positive as anticipated, in any field there are bound to be surprises with the first wells and the challenge is to utilise that information to optimize the future development of the field.”
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