Matra Petroleum (LON:MTA) , the AIM listed oil and gas group operating in Russia, reported this morning that production testing was about to get under way at Well-12 on its Sokolovskoe field and that oil sales would start shortly from Well-13. Well-12 was Matra’s original discovery well and was drilled on Sokolovskoe in late 2007. That was followed by Well-13, which was drilled in October 2009 and completed in May last year. Both wells have previously faced technical problems predominantly because of water influx.

In today’s update, Matra said that production equipment had now been installed at Well-13 and the well was now producing on clean-up flow. Once a stabilised rate is established a further pressure build-up survey will be acquired. Elsewhere, the drilling of the Well-12 sidetrack is now completed and the production liner has been installed. The well will now be completed for production and the rig will be moved off location before commencing production.

Peter Hind, Matra’s managing director, said: “We are pleased that Well-12 has been successfully side-tracked to a location 50m from the original hole and the well has been terminated in the oil reservoir. The well has been completed with a pre-perforated and uncemented liner across the reservoir interval and we hope that will reduce formation damage. Once the rig has been moved off we will begin production testing the well to ascertain its productivity. Now that a separator and flare-line have been installed at Well-13, production has commenced and oil sales will start shortly. The well is now on ‘clean-up’ flow and once stabilised flow is achieved a further pressure build-up survey will be taken to see how we may best improve the well’s performance.”

In early February Matra raised £1.55m before expenses in a placing of 50m new shares priced at 3.1p each, with the funds earmarked for working capital. Delek-International Energy, the Israeli conglomerate and a long-term backer of Matra, subscribed for 14.5m of the shares. Today, the Matra Petroleum share price edged up slightly to 4.22p.

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