Regal Petroleum PLC
13 February 2004
For Immediate Release 13 February 2004
REGAL PETROLEUM plc ('the Company')
Regal Petroleum is pleased to announce that following the company's press
release dated 23 January 2004 in respect to the oil discovery at Kallirachi we
are able provide an update of the technical results from the well prepared by
independent consultants and the overall work programme for Kavala Oil S.A.
KALLIRACHI 1 - EXPLORATION WELL
• The well was drilled in 49 days, within budget to a total depth of
2555 m.
• The well confirmed that a major fault identified on 3D seismic
provides the lateral seal. A very competent vertical seal is provided by 900 m
of salt deposits. The field is a combination stratigraphic-structural trap.
• Existing 3D seismic provides excellent resolution over the entire
field area.
• The thickness of the reservoir in Kallirachi -1 well is over 300m with
a net pay zone of 100m (previous estimate during drilling was 200 m reservoir
thickness and 61 meter pay zone), corresponding to Prinos Group equivalent
reservoir. Surface fluid samples from the flow of the well, as well as log and
core measurements, proved the presence of sweet (37 degreesAPI), high quality
oil in multi-layered sandstone pay zones. Reservoir pressure ranges from 330
to 365bar. The well is interpreted as being at the South West edge of the
structure where the sands are less well developed.
• No oil-water contact was encountered and the well has proved
hydrocarbons down to 2555m. Accordingly, the reservoir is open on depth.
• Well data analysis suggests that this well can conservatively produce
up to 2,000bopd.
• The probable and possible oil-in-place volume is expected to be up to
650MMstb (240 million recoverable).
• Approximately 20 kilometers west of the Kallirachi well is the Athos
discovery which indicated the presence of similar quality sweet oil. Based on
technical and exploration data obtained to date, the Athos structure is a
continuation of a single large structure.
• Regal Petroleum and Kavala Oil are preparing a 6 month programme of further
appraisal, including 3D seismic inversion of the Prinos Group basin and well
planning activities, to confirm the size and shape of the structure and
optimise the location and design of planned further appraisal/development /
production wells. The programme will confirm the porosity, volatility, oil
saturation and existence of large sandstone reservoirs on the basin.
• Two development / production wells are planned for the 3rd quarter of 2004
with a view to preparing a feasibility study in the first half of 2005 once
the company has achieved its production targets from Prinos, Prinos North and
Epsilon (see below). Subject to the feasibility study, the company will
proceed with the development of the Kallirachi field.
PRINOS & PRINOS NORTH
• Following Regal's acquisition of Kavala Oil S.A, independent studies of the
Prinos, Prinos North and Epsilon fields have been updated and show
recoverable oil reserves of 80MMstb.
• Daily production from Prinos and Prinos North is expected to increase
to a minimum of 12,000 bopd by January 2005.
• Infill drilling of 4 wells is to be carried out in the unexploited newly
discovered pools in the Prinos and Prinos North Fields commencing in May
2004. In addition, 3 more submersible pumps are to be installed this year.
EPSILON
• The Epsilon field was discovered in 2001/ 2002 and is approximately 4
km North West of the Prinos field production facilities.
• Development engineering studies are currently being carried out with a
view to commencing development of the field in the 4th quarter of 2004.
• The initial plan is to drill a total of 6 production wells from a
production platform to be commissioned by Kavala Oil S.A by the commencement
of the fourth quarter of 2004. The platform will be connected to the existing
Prinos production facilities.
• Daily production of a minimum of 13,000 bopd is expected from the
Epsilon field to commence around July 2005.
PRODUCTION TARGET
• The company is expecting minimum daily production of 25,000 bopd from the
Kavala operations by July 2005; being 12,000 bopd from the Prinos and Prinos
North fields and a further 13,000 bopd from Epsilon.
• The operations break even level of production from Prinos, Prinos
North and Epsilon is estimated at 4,200 bopd assuming an oil price of $20 per
barrel.
Frank Timis, Executive Chairman, commented:
'The Kallirachi find has exceeded our expectations by a considerable margin. The
discovery of a sweet oil reservoir of such proportions, with Regal's significant
infrastructure already in place in an important EU country, underpins the
considerable potential of Regal. Combined with the expected increase in
production from Prinos and Prinos North and the planned development of Epsilon,
Regal is on the way to becoming a significant oil producer within Europe'.
For further information please contact:
Regal Tel: 020 7647 6622
Frank Timis, Executive Chairman
Buchanan Communications Tel: 020 7466 5000
Bobby Morse / Catherine Miles
This information is provided by RNS
The company news service from the London Stock Exchange
*A Private Investor is a recipient of the information who meets all of the conditions set out below, the recipient:
Obtains access to the information in a personal capacity;
Is not required to be regulated or supervised by a body concerned with the regulation or supervision of investment or financial services;
Is not currently registered or qualified as a professional securities trader or investment adviser with any national or state exchange, regulatory authority, professional association or recognised professional body;
Does not currently act in any capacity as an investment adviser, whether or not they have at some time been qualified to do so;
Uses the information solely in relation to the management of their personal funds and not as a trader to the public or for the investment of corporate funds;
Does not distribute, republish or otherwise provide any information or derived works to any third party in any manner or use or process information or derived works for any commercial purposes.
Please note, this site uses cookies. Some of the cookies are essential for parts of the site to operate and have already been set. You may delete and block all cookies from this site, but if you do, parts of the site may not work. To find out more about the cookies used on Investegate and how you can manage them, see our Privacy and Cookie Policy
To continue using Investegate, please confirm that you are a private investor as well as agreeing to our Privacy and Cookie Policy & Terms.