RPT.L Regulatory News (RPT)

17 Oct 2007 08:49

Regal Petroleum PLC17 October 2007 Immediate Release 17 October 2007 REGAL PETROLEUM PLC ("Regal" or "the Company") Update on Romanian Operations Barlad ConcessionRegal is pleased to announce the spudding of exploration well RBN-4 in theBarlad Concession in which the Company holds a 100% working interest. It isplanned that the RBN-4 well, once completed, will be followed by the Company'ssecond planned exploration well, RBN-3. The RBN-4 well is being drilled on a Sarmatian formation gas prospect identifiedby Regal in late 2006 using the 2D seismic data acquired by the Company in 2006and is planned to reach a target depth of 1,050 metres. The well will be loggedon completion of drilling and the rig moved to the RBN-3 location approximately5 kilometres to the northwest. It is envisaged that the RBN-4 well will takeapproximately 18 days to drill at a cost of approximately US$1.0 million. Anytesting of the well, if required, will be deferred until a lower cost wellworkover unit can be mobilised. The RBN-3 well is also planned to test a Sarmatian formation gas prospect and isestimated to take approximately 20 days to drill at a cost of approximatelyUS$1.1 million. These prospects are supported by seismic amplitudes and have been assessed bythe Company as having geological probability of success of approximately 30%.The Company has computed best estimate unrisked undiscoveredgas-initially-in-place volumes of 30 bcf for the RBN-4 prospect and 61 bcf forthe RBN-3 prospect. The proximity of a network of gas pipelines coupled with thelow costs of both drilling and gas handling facilities allows small gasaccumulations to be commercially exploited. Following evaluation of the results from these two Barlad wells, Regal plans toextend the Barlad licence into its second exploration period in order to furthertest Sarmatian prospects and to finalise evaluation of the potential of thedeeper oil play within Eocene and pre-Miocene formations in the south of theBarlad Concession, within an area known as the Barlad Depression. Suceava ConcessionIn the adjacent Suceava Concession where Aurelian Oil and Gas plc ("Aurelian")operates on behalf of a joint venture between Regal and Aurelian, with eachcompany holding a 50% working interest, it is anticipated that the DornestiSud-1 well will be spudded in November 2007. The Dornesti Sud-1 well, whichwill complete the earn-in work commitment undertaken by Aurelian, is alsotargeting a shallow Sarmatian gas prospect and is expected to be drilled to atotal depth of 900 metres in approximately 16 days. The Dornesti Sud prospectlies some 5 kilometres up dip from Regal's 2005 SE-1 well which identified asub-economic accumulation of gas in the Sarmatian formation. For further information, please contact: Regal Tel: 020 7408 9500Neil Ritson, Chief Executive OfficerFrank Scolaro, Chairman Evolution Securities Tel: 020 7071 4300Robert Collins Mirabaud Securities Tel: 020 7321 2508Pav Sanghera Buchanan Communications Tel: 020 7466 5000Bobby MorseBen Willey Definitions: bcf billion cubic feetundiscovered gas-initially-in-place a category of petroleum resources as definedby the Society of Petroleum Engineers In accordance with the guidelines of the AIM market of the London Stock Exchange, Neil Ritson BSc (Hons) Geophysics, FGS, Chief Executive Officer of Regal 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