16th May 2007 07:01
Regal Petroleum PLC16 May 2007 Immediate Release 16 May 2007 REGAL PETROLEUM PLC ("Regal" or "the Company") Update on Ukrainian Operations Regal is pleased to announce completion of both the pipeline which connects theSV-10 well to the existing Regal-owned MEX-GOL facility and the near completionof the 3D seismic survey over the MEX-GOL field in Ukraine. As announced in January 2007, Regal has tested the SV-10 well on the Svyrydivske("SV") field and has since constructed a new 4.3 kilometre pipeline connectingthe well to the Mekhediviska-Golotvschinska ("MEX-GOL") gas gathering facility.The SV-10 well was originally drilled in 1998 and was subsequently worked overby Regal in late 2006 using coiled tubing and nitrogen lift. The well was flowtested from mid November 2006 to February 2007 during which time average flowrates of approximately 46,000 m3/d of gas (1.62 mmcf/d) and 8.5 m3/d (50 bbls/d)of condensate were achieved. Average production in April 2007 from Regal's existing Ukrainian pilotproduction operations was 117,100 m3/d (4.14 mmcf/d) of gas and 48.9 m3/d (290bbls/d) of condensate. Final pressure testing of the new pipeline is underway and, once completed, gasand condensate is expected to be available for sale before the end of May 2007.The additional production from the SV-10 well is forecast to increase the dailyvolume by some 25 per cent. In addition, the acquisition of a 3D seismic survey covering approximately 100square kilometres of the MEX-GOL production licence, which commenced on 24January 2007, is nearing completion. The field crew has successfully acquiredover 96 square kilometres of the survey and is now acquiring minor infill datato improve quality. This data will now be processed and interpreted byUkrgeofizika and once interpreted, the data is expected to form the basis of anew reserves determination. Neil Ritson, Regal's Chief Executive Officer, commented, "We are delighted withthe progress on field operations which has been made since receiving the SupremeCourt judgment supporting our title in December last year. The permanent hook upof a fifth producing well will provide a significant increase in production andthe new 3D seismic should greatly assist in the full field development whichwill be underway with the commencement of drilling planned for the summer." As previously announced, the Company is presently in the early stages of apartial divestment process relating to its Ukrainian production assets throughadvisors Tristone Capital Limited ("Tristone"), with a view to furtheraccelerating the field development with a strategic partner. Qualified partieshave been contacted by Tristone and proposals will be sought in due course. For further information, please contact: Regal Tel: 020 7408 9500 Neil Ritson, Chief Executive OfficerFrank Scolaro, Chairman Definitions: m3/d cubic metres per daymmcf/d million cubic feet per daybbls/d barrels per day In accordance with the guidelines of the AIM market of the London Stock Exchange, Neil Ritson BSc (Hons) Geophysics, FGS, Chief Executive Officer of Regal Petroleum plc, is the qualified person that has reviewed the technical information contained in this press release. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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