(Alliance News) - Regal Petroleum PLC on Wednesday said it is confident in the potential of its licence in Ukraine following an increase in reserves and resources estimated.
The AIM-listed oil & gas exploration and production company said it engaged US-based independent petroleum consultancy DeGolyer & MacNaughton to prepare an updated assessment of the remaining reserves and contingent resources attributable to the VAS field, and the prospective resources attributed to the Vvdenska prospect, located within the Vasyschevskoye gas and condensate licence area.
The Vasyschevskoye licence is located in north-eastern Ukraine and extends over an area of 33.2 square kilometres. This production licence was granted in August 2012 and has a duration of 20 years.
The gas and condensate resources located within the licence area are trapped in an anticlinal structure broken into several faulted blocks, the company explained, which are gently dipping to the north, stretching from the north-east to south-west along a main bounding fault.
The independent creport provides an update on Regal's reserves and resources since the previous estimation undertaken by Senergy GB Ltd as at January 2016. The assessment shows a "material" increase in the proved and proved + probable categories of remaining reserves from the 2016 Senergy estimates.
"We are very pleased with the increase in reserves and resources estimated in this new independent assessment, both in relation to the producing VAS field and the recognition of the prospectivity of the Vvdenska prospect. It supports our confidence in the potential of the licence," said Chief Executive Sergii Glazunov.
He added: "We are continuing with further work to integrate the new 3D seismic data into our subsurface model, with the aim of developing a comprehensive understanding of the reservoirs, which will be utilised in our planned field development programme."
Regal shares were trading 3.3% lower in London on Wednesday at 31.61 pence each.