Ukraine Operations Update

RNS Number : 7447A

Regal Petroleum PLC

03 April 2012

 



3 April 2012

Regal Petroleum Plc

Ukraine Operations Update

Regal Petroleum plc ("Regal" or the "Company"), the AIM-listed (RPT) oil and gas exploration and production group, is pleased to announce its production figures for the first quarter of 2012 and an update on operational activities at its 100% owned and operated Mekhediviska-Golotvshinska (MEX-GOL) and Svyrydivske (SV) gas and condensate fields in Ukraine.

The Company's Ukrainian gas and condensate production for the first quarter of 2012 averaged 233,800 m³/d of gas and 49 m³/d of condensate (1,769 boepd in aggregate). 

The Company has commenced work on its investment programme for 2012 which is designed to continue the development of its MEX-GOL and SV fields and includes the drilling of 2 new wells, the work-over of 3 existing wells and upgrades to its processing facilities.  The funding for this programme is budgeted to be sourced from existing cash and operational revenues.

The SV-53 well was spudded on 28 March 2012.  The well is scheduled to take 400 days to reach its target depth of 5,450 metres and is targeting the Visean reservoirs ("B-Sands").  The well is currently drilling at a depth of 1,862 metres.

The MEX-105 well is expected to be spudded in late April or early May 2012, and is scheduled to take 350 days to reach its target depth of 5,250 metres.  This well is also targeting the Visean reservoirs.

Both wells are being drilled by local Ukrainian drilling contractors, with the Ukrainian drilling rigs being supplemented by the use of selected western technology and equipment designed to improve drilling operations.

The Company has recently completed the first of 3 work-overs of existing wells designed to enhance production performance of these wells, with the SV-66 well currently on production test following its work-over.  An upgrade of methanol equipment at 2 existing wells is also planned to commence later in 2012.

The Company's gas treatment facility is being upgraded, over two phases, during 2012 to enhance the facility's overall efficiency and incorporate compression equipment, and additional upgrade work will provide for LPG recovery.

For further information, please contact:

Regal Petroleum plc	Tel: [phone]
Keith Henry, Chairman
Alexey Timofeyev, Director
Strand Hanson Limited	Tel: [phone]
Simon Raggett / Rory Murphy
Citigate Dewe Rogerson	Tel: [phone]
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

 

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