13 Nov 2008 16:23
Regal Petroleum plc
("Regal" or the "Company")
13 November 2008
Ukraine and Romania Operations Update
Regal is pleased to provide an update on its Ukrainian production operations and the results of the testing of appraisal well RBN-S1 in Romania.
Ukrainian Operations
Work has progressed according to plan on the following operations:
MEX-106 and SV-58 development wells - the first of the two new-build 2000 HP Lewco drilling rigs (operated by Saipem) is currently being rigged up at the MEX-106 well location with the second rig (to be used for the SV-58 well) being cleared through customs, such that the first of the new generation deep wells is planned to be spudded during December 2008.
Workovers - the ongoing workover campaign is continuing, with the MEX-102 well currently being flowed from a previously unexploited reservoir to clean up the well prior to taking the well back into production. The successful data gathering of the GOL-2 well re-entry removed uncertainty around unexploited additional production potential from behind-pipe reservoirs in this well but confirmed the requirement of a low pressure pipeline system to produce. The GOL-1 workover is under consideration as the next workover candidate.
MEX-103 development well - drilling of this well has now been concluded and preparations are ongoing to complete the well for production. The flow line to the production facility is nearly complete and commencement of production is scheduled for around the end of November 2008.
High pressure pipeline - installation and commissioning of a high pressure gas pipeline has been completed ahead of schedule to increase production export capacity into the Kursk-Kyiv pipeline.
These activities are expected to favourably impact production rates and actual rates from the tied-in wells will be announced in due course.
Romanian Appraisal Well Outcome
Regal has completed testing of the RBN-S1 well in the Barlad Concession in Romania, in which the Company holds a 100% working interest. The well is the first to appraise the RBN-4 gas discovery (3.74 mmscf/d gas, announced on 13 December 2007) and was drilled to a total depth of 850 metres into a Sarmatian formation. Gas shows while drilling and wireline logs indicated that a deltaic sandstone objective from 716-811m potentially contained 34m of net gas pay.
The test programme perforated depths 716-736m, 746-748m, 768-780m, 795-800m and 806-811m, and despite attempts to draw gas into the well using nitrogen-lift, the well only delivered gas bubbles at surface. The well has established that the reservoir quality of the 95m objective deltaic system is inadequate within the tested 80 sq km truncation trap, and was drilled beyond the extent of the RBN-4 well fluvial reservoir which appears to be hosted in a 10m stratigraphic interval inside a 5-15 sq km depositional reservoir trap. The well is being plugged and abandoned.
For further information, please contact:
Regal Petroleum plc Tel: 020 7408 9500
David J Greer, CEO
Strand Partners Tel: 020 7409 3494
Rory Murphy
Mirabaud Securities Tel: 020 7878 3362
Peter Krens / Pav Sanghera
Citigate Dewe Rogerson Tel: 020 7638 9571
Media Enquiries: Martin Jackson
Analyst Enquires: Emma Woollaston
In accordance with the guidelines of the AIM market of the London Stock Exchange, Ronan McElroy, PhD Geology, SPE, Chief Technologist of Regal Petroleum plc, is the qualified person that has reviewed the technical information contained in this press release.
Definitions:
HP - horsepower
m - metres
mmscf/d - million standard cubic feet per day
sq km - square kilometres