Tim O'Neal posted an 8-under 64 to take second place at 12-under-par 132. First-round co-leaders Bill Haas and Scott Weatherly each shot 3-under 69 to share third place at minus-11. They were joined there by Kim Felton (67) and Brent Schwarzrock (68).
Matteson began on the second nine at Highland Springs Country Club and got off to a great start. He holed a lob-wedge from 80 yards out for eagle at the 10th to move to minus-9.
The Virginia Beach Open winner came right back with a birdie on the par-5 11th. Matteson, who also owns two runner-up finishes this year, parred three straight before sinking another birdie at the par-3 15th.
Matteson turned at minus-12 thanks to a birdie on the 17th. Around the turn, he dropped in a birdie putt on the first and made it two straight with a birdie at the second.
The 25-year-old birdied the third to make it three in a row and that moved him to minus-15. Matteson birdied the sixth and then parred his final three holes. He matched the 36-hole scoring record of 128, first set by Joe Ogilvie in 2003.
'I'm hitting a lot of good shots and getting lots of good opportunities,' Matteson said. 'When you give yourself enough chances, you're going to play well out here. It's a bonus knocking one in from the fairway on your first hole and getting off to a good start.'
O'Neal got off to a flying start from the 10th. He birdied No. 10 and made it two in a row with a birdie on the next. The Georgia-native moved to 7 under with a birdie on the par-4 12th.
The 32-year-old parred his next five holes before sinking another birdie putt on the 18th. O'Neal made it two straight as he birdied the first. He got to 10 under with a birdie on the third.
O'Neal, whose best tour finish was earlier this year as he finished second at the Northeast Pennsylvania Classic, picked up another birdie on the par-3 sixth. He carded his last birdie at the eighth to end four shots back at minus-12.
'I put myself in position to make birdies today,' said O'Neal. 'I didn't make any bogeys and birdied all the par-5s. It always helps to get off to a good start.'
Vance Veazey, who won the season-opening BellSouth Panama Championship, carded a 65 to move into a share of seventh place at 10-under-par 134. He was joined there by Pat Bates, Gabriel Hjertstedt, Tripp Isenhour and Kevin Johnson.
Roger Tambellini, who was runner-up to Jason Gore at last week's Cox Classic, is one of six players one stroke further back at minus-9.
The cut line fell at 5-under-par 139. Among those who missed out on the weekend were Erik Compton (140), Casey Wittenberg (141) and Jeff Freeman (143). This was the first time in six appearances at this event that Freeman missed the cut.