30 Sep 2010 07:01
Regal Petroleum plc
("Regal" or the "Company")
30 September 2010
OPERATIONAL UPDATE
FIELD DEVELOPMENT PROGRAMME
Regal, the AIM-listed oil and gas exploration and production group (symbol: RPT), provides an operational update on its current production development programme in Ukraine.
Drilling
MEX-120
The well was completed with a 7 inch liner over the B-sand sequence (B-22 & B-23 reservoirs), and after testing, was hooked up to the gas processing plant. Production rates are showing a decreasing trend that has not yet stabilised; a well test on 22 September 2010 recorded a flow of 78 boepd (10,700 m3/d gas and 0.6 m3/d condensate).
SV-69
The 95/8 inch intermediate casing was set at 4,840m, and the well reached TD below the B-sand objective on 29 September 2010 at 5,420m. Completion, testing and hook-up operations are expected to be concluded by early November 2010.
Workovers
SV-66
A coiled-tubing intervention to remove an obstruction at the base of the production tubing was completed. The well is producing steadily to the gas plant, and was tested on 26 September 2010 at a rate of 246 boepd (39,140 m3/d gas and 0.3 m3/d condensate) on a 6mm choke without any need to periodically cycle the well to remove fluids.
MEX-106
The intervention to remove the blockage and resume the T and D-sands perforation and test programme was completed. The well was brought back online on 9 September 2010, and although production logging has confirmed a gas contribution from perforations of the T-2 sand at 5,620m, the D-sands do not show any evidence of inflow. The well has not yet been tested through the well test facility. An estimated 6-7 m3 of completion brine is produced back from the well on a daily basis from the B-20 reservoir. The ultimate performance potential of the well remains unknown. The current estimated production rate for MEX-106 is 156 boepd (20,000 m3/d gas and 5 m3/d condensate).
MEX-103
A work-over to re-perforate the B-20 reservoir, productive in adjacent wells, was completed on 8 September 2010. The well-test pressure buildups indicate that the reservoir is now connected fully to the borehole. However, sustainable flow rates have not yet been demonstrated.
SV-61
A work-over was conducted on SV-61 in order to perforate the B-23 and a B-22 layer, and to allow access to the 41/2 inch slotted liner to enable potential production from thin sands in the B-26 and B-27 sequences. The rig was released from location on 23 September 2010, with production testing scheduled to begin on 30 September 2010.
MEX-102
Production tests were performed and indicated that the production ports installed in the completion could not be opened in order to reintroduce condensate-rich B-20 gas into the production stream without impairing the gas performance of the well. The well output was tested at a rate of 488 boepd (55,000 m3/d gas and 23 m3/d condensate) on 4 August 2010.
SV-10 & MEX-3
Site preparations have been completed in readiness to receive the wellhead compressor packages which have been dispatched by the manufacturer in Canada. Installation and commissioning of the equipment is on schedule to deliver the anticipated production enhancement from SV-10 and MEX-3 before the end of 2010.
OTHER WELLS
Current estimated production from SV-58 is 762 boepd (105,000 m3/d gas and 17 m3/d condensate) and from GOL-1 is 54 boepd (8000 m3/d gas and 0.6 m3/d condensate) and these wells have continued to produce steadily.
PRODUCTION
The Company's daily production rate, averaged over a four-month period, was 1,686 boepd (218,694 m3/d gas and 51.1 m3/d condensate) for the period October 2009 to January 2010; rising to 1,798 boepd (233,046 m3/d gas and 54.6 m3/d condensate) for the February to May 2010 period; and was 2,126 boepd (286,245 m3/d gas and 54.0 m3/d condensate) for the June to September 2010 period. Production increments from wells SV-61 and SV-69, as well as the two compressor packages, are anticipated by the end of 2010.
For further information, please contact:
Regal Petroleum plc Tel: 020 7408 9500
Keith Henry, Chairman
Robert Wilde, Finance Director
Strand Hanson Limited Tel: 020 7409 3494
Simon Raggett / Rory Murphy
Citigate Dewe Rogerson Tel: 020 7638 9571
Martin Jackson / George Cazenove
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:
bbls barrels
boe barrels of oil equivalent
boepd barrels of oil equivalent per day
m metres
m3 cubic metres
m3/d cubic metres per day
MMscf million standard cubic feet
TD Total Depth
Conversion Factors (SPE):
1 MMscf gas = 176.7 boe
100,000 m3 gas = 624 boe
1 m3 liquid = 6.29 bbls liquid