7 Sep 2009 07:00
Regal Petroleum plc
("Regal" or the "Company")
7th September 2009
Spudding of well SV-61, Ukraine
Regal, the AIM-listed (RPT) oil and gas exploration and production company with activities in the Ukraine, Romania and Egypt, is pleased to announce the successful spudding of development well SV-61 in Ukraine on 5th September 2009 at 19.30 hrs Ukrainian time.
SV-61 is the third "new generation" well to be spudded on the Company's Ukrainian licences using the new 2,000 bhp, top-drive, American built rigs that were imported into the country at the end of 2008. The objective is to develop proven reserves in the Carboniferous, Visean Age ("B Sands") reservoir and, as with the first two new-generation wells drilled, MEX-106 and SV-58, to also extend the well deeper into Tournasian Age horizons (the "T Sands"), also in the Carboniferous, with the aim of appraising further gas potential. It is expected to take approximately six months to drill to the planned target depth ("TD") of approximately 6,000 metres.
The spudding of SV-61 has been made possible following the release of the rig from MEX-106, which reached TD on 25th July 2009 after 196 days of drilling. The well is currently being prepared for a production test and a separate announcement about the test results will be made in due course.
David J Greer, Regal's Chief Executive Officer, said:
"We are all very pleased with the safe manner and speed in which drilling activities are being executed in Ukraine. By combining a number of austerity measures with a successful equity placing, the Company has been able to continue to grow through the current economic recession and to continue to implement its Ukrainian development plan. With production set to increase shortly and plans to spud an additional new well and a new resource update all due over the remainder of 2009, Regal's future outlook looks encouraging."
For further information, please contact:
| Regal Petroleum plc | Tel: 020 7408 9500 |
| David J Greer, CEO / Robert Wilde, FD | |
| Strand Partners Limited | Tel: 020 7409 3494 |
| Simon Raggett / Rory Murphy | |
| Mirabaud Securities | Tel: 020 7878 3362 |
| Peter Krens / Pav Sanghera | |
| Citigate Dewe Rogerson | Tel: 020 7638 9571 |
| Media Enquiries: Martin Jackson | |
| Analyst Enquiries: Emma Woollaston |
In accordance with the guidelines of the AIM market of the London Stock Exchange, Ronan McElroy, PhD Geology, SPE, Chief Technologist of Regal Petroleum plc, is the qualified person that has reviewed the technical information contained in this press release.