5th Oct 2006 07:01
Regal Petroleum PLC05 October 2006 -------------------------------------------------------------------------------- Immediate Release 5 October 2006 REGAL PETROLEUM PLC ("Regal" or "the Company") Joint Venture on the East Ras Budran Concession, Egypt with Apache Khalda Corporation Regal is pleased to announce that Regal and Apache Khalda Corporation LDC("Apache Khalda") have entered into a joint venture in respect of Regal's EastRas Budran Concession ("ERB Concession") in Egypt. Regal currently holds a 100% interest in the ERB Concession and Apache Khaldahas agreed a farm-in for a 75% interest in the ERB Concession upon Apache Khaldapaying approximately $4.85 million representing a proportionate re-imbursementof back costs expended by Regal on this Concession. Regal and Apache Khalda haveagreed a future exploration programme which includes a 3D seismic survey and thedrilling of 2 wells on the Concession with a total programme cost in excess of$12 million. Apache Khalda will be the operator of the Concession for thefuture, subject to Egyptian Government approval of the transaction. Regal andApache Khalda will fund future activities on the Concession in proportion totheir respective interests. The ERB Concession is an onshore exploration block in the East Ras Budran Area,Western Sinai Peninsula, Gulf of Suez, Egypt with an area of 521 squarekilometres. The southern part of the block is a flat semi-desert, the BabaPlain, whilst the north of the block comprises low lying mountains. Apache Khalda is a subsidiary of US-based Apache Corporation, one of the largestoil and gas operators in Egypt. Apache Corporation, which also operates in theUnited States, Canada, the United Kingdom sector of the North Sea, Australia andArgentina, is listed on the New York Stock Exchange and NASDAQ with anapproximate market capitalisation of $20 billion. For further information, please contact: Regal Tel: 020 7408 9500 Roger Phillips, Finance DirectorFrank Scolaro, Non-executive Director This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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