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Regal Petroleum making progress on Ukraine drilling programme

30 November 2009

Regal Petroleum, the AIM-listed oil and gas group, today said it was making good progress on a drilling programme in the Mekhediviska-Golotvshinska (MEX-GOL) and Svyrydivske (SV) gas and condensate fields in Ukraine.

Regal is drilling a series of "new generation" wells using two new Saipem-operated Lewco 2000hp rigs. These wells are intended to establish additional production from the proven Visean aged reservoirs (B-sand) and to appraise and develop the deeper Tournaisian (T-sand) and Devonian (D-sand) aged reservoirs.

The first of these new generation wells, MEX-106, is producing from the B-sand reservoirs at a stable rate of 2.6 million standard cubic feet of gas per day (MM scf/d) and 75 barrels of oil equivalent (boepd) of condensate.

The second well, SV-58, has now been completed, perforated and flared at surface and is currently being prepared for test from B-sand intervals via a production test separator.

The third well, SV-61, spud on September 5, 2009, is making good progress and is presently at a depth of 4,890 metres where 9 5/8" casing has been run and cemented.

The fourth well, SV-66, was spud on November 23, 2009 and has reached a depth of 1,110 metres where 20" casing is being run.

Regal was hit with a £600,000 fine and censure by AIM regulators last week over rule breaches that took place between 2003 and 2005 under a previous management regime.






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