RPT.L Regulatory News (RPT)

8 Oct 2007 07:00

Regal Petroleum PLC08 October 2007 Immediate Release 8 October 2007 REGAL PETROLEUM PLC ("Regal" or "the Company") Ukrainian Field Development Underway Regal is pleased to announce that the drilling of well MEX-103 has commencedwithin its Mekhediviska-Golotvschinska and Svyrydivske ("MEX-GOL and SV")production licences (working interest 100%) in Ukraine. This well is the first new well on the MEX-GOL field since 2004 when Regaldrilled well MEX-102. The drilling is being conducted byChernihivnaftagasgeologia ("CNGG") under a contract signed in July 2007 and thewell, which has a total targeted depth of 5,200 metres, is anticipated to becompleted 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 at 169 mmboe (RyderScott, 2005). It is anticipated that furtherdrilling will take place in 2008. Currently Regal is preparing sites andapplying for permits for the drilling of five further wells - MEX-106, GOL-108,SV-53, SV-56 and SV-58 - which are planned for drilling once additional rigsbecome available. The Company presently produces from five wells (MEX-102, MEX-3, GOL-1, GOL-2 andSV-10) which are produced through the Company's existing gas processing andexport facilities. In September 2007, average production was 5.51 mmcf of gasper day and 294 barrels of condensate per day (total equivalent of 1,275 boepd). On 14 September 2007, the Company announced the signing of an exclusiveMemorandum of Understanding ("MOU") with MND Exploration and Production Limited("MND"), under the terms of which, MND's holding company KKCG Oil and Gas BV, isproposing to invest a total of US$330,000,000 in the development of the MEX-GOLand SV fields in return for a 50% working interest in the Ukrainian productionassets. Due diligence and the preparation of transaction documentation iscontinuing and the completion of any transaction remains conditional thereon. Regal's Chief Executive Officer, Neil Ritson, commented: "We are extremelypleased to be returning to operational drilling on our Ukrainian fields with thefirst well in the full development programme for this major asset. Over thenext year we plan to mobilise additional drilling rigs and to move into asustained period of development drilling." 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: boepd barrels of oil equivalent per daymmboe million barrels of oil equivalentmmcf million cubic feet 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