3 Oct 2005 07:00
Regal Petroleum PLC03 October 2005 Immediate Release 3 October 2005 REGAL PETROLEUM PLC ("Regal" or the "Company") Ukraine Reserves Report The Directors are pleased to announce that the reserves report prepared byindependent auditors on the Company's Ukraine proven and probable reserves hasnow been issued in final form. The Company engaged independent reserve auditors Ryder Scott Company, L.P. ("Ryder Scott") to estimate the remaining recoverable reserves of its Ukrainelicence areas. The Ukraine licence areas consist of two groups of reservoirs:the Middle Carboniferous ("B reservoirs") and the Lower Carboniferous ("Treservoirs"). The final report has now been issued by Ryder Scott and includes both the Breservoir and the T reservoir. Details of the final Ryder Scott report are summarised as follows: Proven Probable Proven + ProbableGas Bcf 405 408 813Condensate MMbbls 12 14 26Total MMboe 83 86 169 As announced by the Company on 1 July 2005, the scope initially provided toRyder Scott included only the B reservoirs and excluded the T reservoirs.Subsequently, the reporting scope of Ryder Scott was extended to include the Treservoirs. The inclusion of the T reservoirs in the scope has had no effect on the provenand probable reserves, as Ryder Scott has classified the T reservoirs aspossible reserves rather than proven or probable reserves. This is due tolimited well-test and production data on which to base a reserves estimate.Wells to date have concentrated on the shallower B reservoirs. Future drilling,stimulation and well test operations will seek to move these reserves intoproved and probable as part of an integrated development plan. The total proven and probable reserves differ marginally from the previouslyreported total of 174MMboe due to Ryder Scott more accurately modelling thedevelopment plan around the currently producing wells. Commenting on the results of the Ukraine reserves report, Rex Gaisford, ChiefExecutive Officer said: "The results of the independent reserves report confirms the quality andmagnitude of the reserves within Regal's Ukraine licence areas. The Companyremains focussed on carrying out the full field development and production ofits Ukraine assets. The fact that the auditors at the present time were unableto increase the proven and probable reserves with additions from the Treservoirs is a function of the relative immaturity of the field appraisal anddevelopment so far carried out during the previous Exploration and PilotProduction licence phase. It in no way diminishes the Company's expectationsand enthusiasm for the ultimate size and importance of this asset which itintends to develop aggressively to the benefit of the Company, the governmentand the people of the Ukraine." For further information, please contact: Regal Tel: 020 7408 9500Roger Phillips, Finance Director Buchanan Communications Tel: 020 7466 5000Bobby Morse / Ben Willey Definitions: Bcf Billions of cubic feetMMbbls Millions of barrelsMMboe Millions of barrels oil equivalent This information is provided by RNS The company news service from the London Stock Exchange