20 Jan 2010 07:00
Regal Petroleum plc("Regal" or the "Company")
20 January 2010
OPERATIONAL UPDATE
Regal, the AIM-listed oil and gas exploration and production group (symbol: RPT), announces a further update on its drilling and production operations in the Ukraine.
MEX-106 WELL
A wireline tubing cutter is currently awaiting import approval to begin operations to remove the small remaining 3m section of the "fish", following the successful retrieval of the main section last month. This will then enable the T-sand and D-sand abrasive perforation and test programme to resume in February 2010, with the aim of adding production from these horizons to the existing flow in this well, which is currently producing from the B-sands only.
SV-58 WELL
Equipment is currently being mobilised, including 6,200m of coiled-tubing, for deployment to access and enable perforation, using the abrasive perforating technique, of the remaining 75m of target reservoir in the B-sands during February 2010.
SV-61 WELL
A 5m sandstone core was successfully recovered from the T-sands at an interval depth of 5,961m - 5,966m. On re-entering the well, difficulties were encountered preventing further progress. Given that the well was close to its planned target depth, a decision was taken to suspend the 6" hole section and to prioritise activities to accelerate the commencement of B-sand gas production, and consequently cashflow. Horizons deeper than the cored T-sand section in SV-61 will be tested in the nearby SV-66 well. Once that testing has been completed, an operational and economic assessment will then be made to determine what, if any, remedial action may be taken to further test the T-sand and D-sand sequences in SV-61.
Following the success of the recent trial abrasive perforation operation in SV-58, the presence of the rig on SV-61 allows Regal to capitalise on this success. The rig's pumping and liquid handling systems are already in place to immediately enable the installation of multiple abrasive perforation stations, which will each provide three access points to the main B-sand target reservoirs. This approach does not require mobilisation of an additional coiled-tubing unit and its associated equipment, and consequently will enable SV-58 and SV-61 to be perforated, using the abrasive perforation technique, in parallel. This should also enable production from SV-61 to commence ahead of plan.
SV-66 WELL
The well is at a depth of 4,721m and is progressing to the planned intermediate 12 1/4" hole depth of 4,894m, at which stage the 9 5/8" casing will be run immediately above the B-sand reservoir targets, before proceeding on to the B, T and D-sands.
PRODUCTION
The current total daily field production rates are 2,166 boepd (291,040 m3/d of gas and 72.2 m3/d of condensate), reflecting a slightly improved performance from SV-58 as its production has stabilised following the successful abrasive perforation trial. The earlier than planned cessation of drilling in the SV-61 6" hole section, in conjunction with the parallel abrasive perforation operations planned in both SV-58 and SV-61, should result in an improvement in production rates in the near future.
For further information, please contact:
Regal Petroleum plc Tel: 020 7408 9500 David J Greer, CEO
Strand Hanson Limited Tel: 020 7409 3494 Simon Raggett / Rory Murphy
Mirabaud Securities Tel: 020 7878 3362Peter Krens / Pav Sanghera
Citigate Dewe Rogerson Tel: 020 7638 9571Media Enquiries: Martin JacksonAnalyst Enquires: Emma Woollaston
Ronan McElroy, PhD Geology, SPE, Chief Technologist of Regal Petroleum plc, has reviewed and approved the technical information contained within this press release in his capacity as a qualified person, as required under the AIM Rules.
Definitions:
boepd barrels of oil equivalent per daym metresm3/d cubic metres per day" inch