Ukraine Operations Update

RNS Number : 2945Z

Regal Petroleum PLC

05 March 2013

 



5 March 2013

Regal Petroleum plc

("Regal" or the "Company")

Ukraine Operations Update

Regal Petroleum plc (AIM: RPT), the AIM-listed oil and gas exploration and production group, announces an update on its 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 period from 1 January 2013 to 28 February 2013 averaged 224,248 m³/d of gas and 48 m³/d of condensate (1,700 boepd in aggregate).  The Company continues to benefit from the relatively strong gas prices in Ukraine. 

The SV-53 well was hooked up to the gas processing facility in mid-January 2013, and since then production testing has been ongoing using a variety of choke sizes and operating modes.  Although initial flow rates were encouraging, flow rates have declined over the testing period and as yet, stabilised operating performance has not been established.  Testing and monitoring is continuing and it is expected that it may be some weeks before a final assessment of the well can be made.  At this stage it has not been established whether the declining flow performance is due to mechanical, wellbore or reservoir issues.  The well has been hooked up to a compression system and average production over the last 4 days has been 19,183 m³/d of gas and 3 m³/d of condensate (140 boepd in aggregate).  This production is from the Visean reservoirs ("B-Sands").

The MEX-105 well has been drilled to a depth of 5,228 metres, and was terminated 22 metres short of its original target depth as all targeted formations, which are B-sands, had been encountered. Open hole logging operations have been undertaken and the well is currently being cased.

The SV-59 well has reached a depth of 848 metres and drilling is continuing to the well's target depth of 5,470 metres.  This well is also targeting the B-sands.

The workover operations undertaken on the MEX-3 well and GOL-1 well designed to eliminate the ingress of water, have unfortunately proved unsuccessful in eliminating the water ingress and as a result, it has not been possible to bring these wells back on production. Further well interventions are being considered for these wells.

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 / Richard Tulloch
Citigate Dewe Rogerson	Tel: [phone]
Martin Jackson / Jack Rich

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

m³/d                  cubic metres per day

 

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