RPT.L Regulatory News (RPT)

6 Dec 2006 07:02

Regal Petroleum PLC06 December 2006 Immediate Release 6 December 2006 REGAL PETROLEUM PLC ("Regal" or "the Company") Update on Barlad Concession, Romania Regal is pleased to announce an update on technical work that has been recentlyundertaken on its Barlad Concession (the "Concession") in Romania. The Barlad Concession, in which Regal holds a 100% interest, is a largeexploration, development and production block in the north east of Romaniacovering an area of 6285 square kilometres. During the summer of 2006, Regal undertook a 2D seismic programme totalling 803kilometres over the Concession, with 487 kilometres being acquired in thelargely unexplored north of the Concession and a further 316 kilometres beingacquired in the south of the Concession mainly over the Barlad Depression. Thefinal cost of this seismic programme was approximately $5 million. Interpretation of the recently acquired 2D seismic data (803 km), together with200 km of 2D seismic data previously acquired by Regal in 2005 and 800 km ofre-processed 2D seismic acquired in the 1980s and 1990s as well as availablewell control, has now been completed by PGS Reservoir Limited. Over 10 prospects and leads have been currently identified in the prospectiveSarmatian, Eocene and pre-Miocene formations, which are productive in a numberof adjacent oil and gas fields in both Romania and Moldavia, including the largeRoman Gas Field which lies 10 km to the west of the northern part of theConcession. Initial studies, including hydrocarbon volume estimation, have been performed byRegal on these prospects and leads, which has identified a low risk (29%)drillable prospect in the Sarmation formation with an unrisked undiscoveredgas-initially-in-place volume ranging from 60 to 235 bcf (approximately 10 to 40mmbbls oe), with a best estimate of 75 bcf (approximately 12 mmbbls oe). Atleast one of the remaining Sarmatian leads is expected to be matured fordrilling. Further studies are continuing on the Eocene and pre-Miocene formations wherefurther leads have been identified, particularly in the deeper formations in theBarlad Depression to the south of the Concession, which are considered to holdadditional exploration potential for both gas and oil. The Company is in negotiations with drilling contractors in Romania to contracta rig for the drilling of identified prospects, and drilling operations for atleast 2 wells are planned to commence in Q2 of 2007. The Concession, which was ratified in January 2005, has a potential term of 30years of which the first 5 years are scheduled for exploration, in 2 phases. Thefirst 3 year exploration phase requires the acquisition of 1000 km of 2Dseismic, field geochemistry studies and the drilling of 2 wells. The seismic andstudy commitments have now been completed and the total expenditure by Regal todate on the Concession is approximately $7 million. For further information, please contact: Regal Tel: 020 7408 9500Neil Ritson, Chief Executive OfficerFrank Scolaro, Chairman Definitions: km kilometresbcf billions of cubic feetmmbbls oe millions of barrels oil equivalentundiscovered gas-initially-in-place a category of petroleum resources as defined by the Society of Petroleum Engineers In accordance with the guidelines of the AIM market of the London StockExchange, Neil Ritson BSc (Hons) Geophysics, FGS, Chief Executive Officer ofRegal 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 Exchange