4 Jan 2012 14:20
4 January 2012
REGAL PETROLEUM PLC
UKRAINE OPERATIONS UPDATE
Regal Petroleum plc ("Regal", the "Company" or the "Group"), the AIM-listed (RPT) oil and gas exploration and production group, is pleased to provide an update on its operations in Ukraine.
The Company has finalised its investment programme for 2012 at its Mekhediviska Golotvshinska ("MEX-GOL") and Svyrydivske ("SV") gas and condensate fields in Ukraine in order to continue the development of these fields. The investment programme includes the drilling of new wells, work-over of existing wells and upgrades to the processing facilities, and it is anticipated that the funding for this programme will be sourced from existing cash and operational revenues.
The Company has entered into drilling contracts with local Ukrainian contractors for the drilling of 2 new wells, SV-53 and MEX-105, and preparations for the commencement of drilling are underway. It is anticipated that SV-53 will be spudded in late February 2012 and MEX-105 will be spudded in mid March 2012. Each well will target the Visean reservoirs ("B-Sands"). The SV-53 well is scheduled to take 400 days to reach its target depth of 5,450 metres, and the MEX-105 well is scheduled to take 350 days to reach its target depth of 5,250 metres. It is intended that the Ukrainian drilling rigs will be supplemented by the use of selected western technology and equipment designed to improve drilling operations.
The Company is planning the work-over of 3 existing wells with a view to enhancing production performance of these wells, and an upgrade of methanol equipment at 2 existing wells is also planned.
The Company's gas treatment facility is to be upgraded to enhance the facility's overall efficiency and incorporate compression equipment, and additional upgrade work will provide for LPG recovery.
The Company's Ukrainian gas and condensate production for the month of December 2011 averaged 231,634 m3/d of gas and 49 m3/d of condensate (1,753 boepd in aggregate).
For further information, please contact:
Regal Petroleum plc | Tel: 020 3427 3550 |
Keith Henry, Chairman | |
Alexey Timofeyev, Director | |
Strand Hanson Limited | Tel: 020 7409 3494 |
Simon Raggett / Rory Murphy |
|
|
|
Citigate Dewe Rogerson | Tel: 020 7638 9571 |
Martin Jackson / Kate Lehane |
|
Joe Staffurth, BSc Geology, PESGB, AAPG, consultant to the Company, 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 day
LPG liquefied petroleum gas
m3/d cubic metres per day