25th Apr 2005 07:01
Regal Petroleum PLC25 April 2005 Immediate Release 25 April 2005 REGAL PETROLEUM PLC ("Regal" or the "Company") Current Trading Update The Directors announce the following trading update on the Company: Romania: The Company today announced the successful completion of explorationwell SE-1 in the Suceava licence resulting in a significant dry gas discovery.Based on current Regal evaluation, existing well data and seismic data coveragethe Company believes that the total recoverable resource in the Suceava licenceis up to 3.8 trillion cubic feet (684 million barrels of oil equivalent). Adrilling programme is currently being finalised and it is expected that a seriesof shallow, low cost appraisal/development wells will be drilled in 2005 and2006. Please refer to the separate Romania press release of today for further detailson the gas discovery in the Suceava licence and the current status on the Barladlicence. Greece: The drilling of the Kallirachi-2 appraisal well in the GreaterKallirachi Area has been completed and has intersected four prospectivereservoirs. The bottom prospective reservoir, a Dolomite formation, has beentested with light oil shows, good reservoir pressure and porosity but lowpermeability. Further testing of the upper three prospective reservoirs(including reservoirs corresponding to Prinos Group equivalent) continues. Afurther update, likely to be within a month, will be provided once the resultsof the testing of all the prospective reservoirs is completed. Current oil production in Greece is approximately 3,000 barrels of oil per day("bopd"). Due to mechanical, technical and operational difficulties withexisting offshore facilities the Directors have revised projected oil productionin Greece for 2005 to an average of 4,000 bopd. With current oil prices, theDirectors remain confident of oil production revenue in Greece for 2005 meetingmarket forecasts. Ukraine: The Ukraine operation continues to be profitable and generate positivecash flow for Regal. Current projected working capital requirements for Ukraineare expected to be funded from this positive cash flow. A full independent reserve audit is being carried out on the Ukraine reserveswith the results expected in Q2 2005. This reserves audit will incorporate theresults of wells drilled in 2003 and 2004, the discovery of an additionalcondensate formation and recent technical evaluations. Egypt: Four large prospective structures have been identified on the Egyptconcession area following the evaluation of existing data. Seismic data iscurrently being re-processed and interpreted and the first exploration well isexpected to commence drilling in the second half of 2005. Liberia: In October 2004 a joint-venture, in which Regal holds a 25 per cent.interest, was awarded two contiguous exploration concessions. Negotiations tofinalise the fiscal terms for the production sharing agreement are continuing. Preliminary Results for 2004: Regal will be announcing its preliminary resultsfor the twelve months ended 31 December 2004 on Tuesday 31 May 2005. Apresentation to analysts, investors and private client brokers will be held atthe offices of Buchanan Communications, 107 Cheapside, London EC2V at 9.30am. 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:
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