25th Apr 2005 07:01
Regal Petroleum PLC25 April 2005 Immediate Release 25 April 2005 REGAL PETROLEUM PLC ("Regal" or the "Company") Romania - Significant Gas Discovery The Directors are pleased to announce that Regal has successfully completed thedrilling of exploration well SE-1 to a total depth of 2,292 metres resulting ina significant gas discovery. Technical evaluations undertaken by Regal indicatea recoverable gas resource in the Suceava licence area of up to 3.8 trillioncubic feet (684 million barrels of oil equivalent). Well Completion: The first well SE-1, drilled in the northwest of the Suceavalicence, has been completed to a depth of 2,292 metres and well tests have beencarried out, with the assistance of independent consultants, on the multiplehydrocarbon bearing formations. The well was drilled on a structural prospect inthe Suceava-E Area, where numerous prospects have been mapped and itsuccessfully intersected multiple reservoir objectives as expected within theSarmatian, Eocene and Cretaceous sandstones. Well Testing: Well tests in both the Sarmatian and Cretaceous intervals haveproduced dry gas (99.4% methane) at varying flow rates. A total of four separatezones have been perforated, frac'ed and tested, and a stable flow rate of 1.2million standard cubic feet per day ("scf/day") tested from a Sarmatian intervalat a depth of approximately 550 metres. It is now intended to complete the SE-1 well and put the well onto an extendedwell test. Estimated Recoverable Resource: The Sarmatian interval above the salt is a siltysandstone of varying thickness of between 5 and 25 metres within afluvio-deltaic system. Volumetric estimates of the Suceava-E structure indicatethat up to 490 billion cubic feet (88 million barrels of oil equivalent ("boe"))of recoverable resources are present within the Suceava-E structure of theSarmatian interval. Based on current Regal evaluation, existing well flow ratedata and seismic data coverage the Company believes that the total recoverableresource in the Sarmatian interval (above the salt) of the entire Suceavalicence area is up to 3.8 trillion cubic feet (684 million boe). The P50estimate of the recoverable resource is 2.3 trillion cubic feet (410 millionboe). Current data and technical evaluation indicates that a greater reservoir qualityand thicker sandstone beds are present in other structures in the Suceavalicence area with significantly higher permeability. Suceava Drilling Programme: A drilling programme is being finalised which willfocus on the highly prospective gas bearing Sarmatian interval, above the salt.It is expected that a series of shallow, low cost exploration/development wellswill be drilled in 2005 and 2006 to test, confirm and evaluate recoverablereserves. In certain cases wells will be deepened below the Sarmatian intervalto test prospective intervals at Eocene or Cretaceous levels which may addupside to the recoverable resource. Suceava Block Profile: The Suceava Block is a 4,103 square kilometreexploration, development and production licence area located on the MoldaviaPlatform, which contains several large commercial gas and condensate fields. TheSuceava Block is located adjacent to and on the same geological trend as theRoman-Secuieni gas field, the largest commercial gas field in Romania, operatedby Romgaz (the Romanian national gas company). The SE-1 well is only approximately 12kms from another significant Romgazoperated gas field, the Todiresti field, and an established gas transportationinfrastructure. Main gas trunk routes lie throughout the Suceava area, enablinglow cost and rapid field development. Barlad Block Update: The Barlad Block is one of the largest exploration,development and production licence blocks in Romania with an area of 6,285square kilometres and is located on the Moldavia Platform. The Barlad Block ison a south eastward extension of Regal's existing Suceava Block. Between 1970 and 1980 a large number of exploration wells were drilled on theBarlad Block, with gas shows in the northern part of the block and oil shows inthe southern part of the block. In addition numerous 2D seismic survey lineswere carried out on the Barlad Block between 1975 and 1985. Approximately 1,000km of existing seismic data is currently being reprocessedand 700km of new seismic is being acquired and processed during Q2 and Q3 2005in order to determine the depositional history of the block. This will improvelead structure identification and refine mapping of prospects to allow welllocations to be selected. The first Barlad exploration well is planned for late2005. The geological setting of the Barlad Block includes two tectonic units: theMoldavian Platform where the Company expects to prove up gas accumulations inthe northern part (similar to those in the Suceava licence) and the BarladDepression where the Company expects to prove up high quality oil accumulationsin the southern part. Commenting on the successful gas discovery in the Romanian well SE-1, FrankTimis, Executive Chairman, said: "The Board is very excited by the positive results of Regal's first explorationwell in Romania. This is a major dry gas discovery in a European country with afavourable tax regime, established oil and gas infrastructure and lowdevelopment costs adding significant value to Regal. We look forward to thedrilling of further appraisal/development wells in this highly prospective areain 2005 and 2006 so that we can add substantial independently audited reservesto our reserves portfolio." 25 April 2005 For further information, please contact: Regal Tel: 020 7408 9500Frank Timis, Executive ChairmanRoger Phillips, Finance Director Buchanan Communications Tel: 020 7466 5000Bobby Morse / Ben Willey Mob: 07802 875 227 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
RPT.L