RPT.L Regulatory News (RPT)

19 Feb 2008 09:44

Regal Petroleum PLC19 February 2008 19 February 2008 REGAL PETROLEUM PLC ("Regal" or the "Company") Ukraine Update Regal Petroleum plc (AIM: RPT), the independent oil & gas exploration andproduction company with interests in the Ukraine, Romania and Egypt, is pleasedto provide an update of its Ukrainian operations as follows:- 1) Regal is currently finalising a Letter of Intent with Saipem S.p.A, theinternational drilling contractor, under which the parties have outlined termsfor the provision of 2 land rigs and 1 workover rig for use at Regal's gas andcondensate fields, Mekhediviska-Golotvschinska and Svyrydivske ("MEX-GOL andSV") (working interest 100%), in Ukraine; 2) Regal has entered into 2 Letters of Intent with Region Ltd, a Ukrainianbased drilling contractor, under which the parties have outlined terms for theprovision of 1 land rig and 1 workover rig respectively for use at Regal's MEX-GOL and SV fields; 3) Regal has entered into a Working Group Agreement with NAK Nadra Ukraynyand Chernihivnaftagasgeologia ("CNGG"), under which the parties have outlinedterms for co-operation in connection with the development of Regal's MEX-GOL andSV fields; 4) Seismic acquisition over the SV field, which has been underway since earlyJanuary 2008 is progressing satisfactorily and approximately 32% of theacquisition has now been completed. The acquisition programme is expected totake a further 2-3 months to complete. 5) Drilling of the MEX-103 well, which is the first new well on the MEX-GOLfield since 2004, is continuing and has reached a depth of approximately 4,150metres. The drilling is being conducted by CNGG under a contract signed in July2007 and the well, which has a total targeted depth of 5,200 metres, isanticipated to be completed in mid-2008. This well is the first stage in the full-field development programme for theMEX-GOL and SV fields which contain audited proven and probable reservesestimated, as at 31 December 2006, at 169 million barrels of oil equivalent,based on a reserves audit conducted by Ryder Scott in 2005. Regal is currently preparing sites and applying for permits for the drilling ofadditional future wells which are planned for drilling once the additional rigsare available in Ukraine. Regal's Chairman and Chief Executive Officer, David J Greer, commented: "We are extremely pleased to have signed the above Letters of Intent in relationto our planned drilling campaign which represents further good progress in ourUkrainian asset development programme. We look forward to finalising allcontract terms in a timely manner and to the safe and efficient execution of ourfield development programme." For further information, please contact: Regal Tel: 020 7408 9500 David J Greer, Chairman & CEO Strand Partners Tel: 020 7409 3494Simon Raggett / Rory Murphy Mirabaud Securities Tel: 020 7878 3362Peter Krens / Pav Sanghera Citigate Dewe Rogerson Tel: 020 7638 9571Media enquiries: Martin JacksonAnalyst enquiries: Scott Fulton In accordance with the guidelines of the AIM market of the London StockExchange, Antonio Mozetic, PhD Geological Sciences, SPE, Director of RegalPetroleum plc, is the qualified person that has reviewed the technicalinformation contained in this press release. This information is provided by RNS The company news service from the London Stock Exchange