Reserves & Resources Update

RNS Number : 2966C
Regal Petroleum PLC
15 April 2013
 



 

15 April 2013

 

REGAL PETROLEUM PLC

("Regal" or the "Company")

Reserves & Resources Update

 

 

Regal Petroleum plc, the AIM-listed (RPT) oil and gas exploration and production group, announces an update on its hydrocarbon reserves and contingent resources at its 100% owned and operated Mekhediviska-Golotvshinska ("MEX-GOL") and Svyrydivske ("SV") gas and condensate fields in Ukraine.

 

The Company engaged independent petroleum consultants, ERC Equipoise Limited ("ERCE"), to prepare an updated assessment of the remaining Reserves and Contingent Resources attributable to the Company's MEX-GOL and SV fields as at 31 December 2012 (the "Report").  The Report is consistent with Regal's field development plans, which comprise the drilling of a further 27 wells, and accords with the March 2007 SPE/WPC/AAPG/SPEE Petroleum Resources Management System standard for classification and reporting.  

 

The Report estimates the remaining Reserves as at 31 December 2012 in the Visean reservoirs ("B-sands") of the MEX-GOL and SV fields as follows:-

 

 

 

Proved

(1P)

Proved + Probable

(2P)

Proved + Probable + Possible (3P)

 

Gas

 

37.1 Bscf

146.5 Bscf

230.7 Bscf

 

Condensate

 

1.5 MMbbl

7.2 MMbbl

14.2 MMbbl

 

Total

 

7.7 MMboe

31.6 MMboe

52.6 MMboe

 

 

The Report estimates the Contingent Resources in the Visean reservoirs of the MEX-GOL and SV fields as follows:-

 

 

 

 

Contingent Resources (1C)

Contingent Resources (2C)

Contingent Resources (3C)

 

Gas

 

174.7 Bscf

330.2 Bscf

648.0 Bscf

 

Condensate

 

7.5 MMbbl

17.2 MMbbl

40.8 MMbbl

 

Total

 

36.6 MMboe

72.2 MMboe

148.8 MMboe

 

 

 

The Report was commissioned to provide an update on the Company's reserves and resources since the previous reserves estimation undertaken by Ryder Scott in 2010 and takes into account information gathered during the drilling of additional wells in the fields since then.  The Gas Initially In Place ("GIIP") assessment in the Report demonstrates discovered GIIP in the Visean reservoirs of 5816 Bscf but, compared with the previous assessment by Ryder Scott, there has been a material reduction in the Proved (1P) and Proved + Probable (2P) categories of remaining Reserves from the previous Ryder Scott estimates which were 40.9 MMboe and 151.3 MMboe respectively.  These reductions reflect lower expected recovery factors, production since 2010 of approximately 1.6 MMboe and the transfer of a significant portion of previously booked Reserves into the Contingent Resources category, reflecting their current immaturity for commercial development. Further evaluation and development of the fields may result in future movement of these Contingent Resources into Reserves. 

 

The MEX-GOL and SV fields contain three prospective reservoir intervals: the principal reservoirs in the Carboniferous Visean, the deeper Carboniferous Tournasian ("T-sands") and the underlying Devonian ("D-sands").  While in the Report, ERCE has estimated volumes of discovered gas totalling 1944 Bscf in the deeper Tournasian and Devonian intervals, ERCE concluded that there is insufficient information at this time to determine whether the discovered gas is recoverable or not, and hence no Reserves or Contingent Resources have been assigned to these reservoirs. Accordingly, all Reserves and Contingent Resources assessed in the Report are within the Visean reservoirs.

 

 

 

For further information, please contact:

 

Regal Petroleum plc

Tel: 020 3427 3550 

Keith Henry, Chairman


Alexey Timofeyev, Director




Strand Hanson Limited

Tel: 020 7409 3494

Rory Murphy / Richard Tulloch

 

 

 

Citigate Dewe Rogerson

Tel: 020 7638 9571

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

 

AAPG

American Association of Petroleum Geologists

bbl

barrels

Bscf

thousands of millions of standard cubic feet

boe

one barrel of oil plus gas converted to oil equivalent using a conversion rate of six thousand standard cubic feet of gas for each barrel of oil equivalent; for the purpose of this definition, one barrel of condensate is equivalent to one barrel of oil

GIIP

gas initially in place

MMbbl

million barrels

MMboe

million barrels of oil equivalent

scf

standard cubic feet measured at 14.7 pounds per square inch and 60 degrees Fahrenheit

SPE

Society of Petroleum Engineers

SPEE

Society of Petroleum Evaluation Engineers

WPC

World Petroleum Council

 

 

The SPE/WPC/AAPG/SPEE Petroleum Resources Management System document, which includes definitions of Reserves and Contingent Resources categorisations, can be viewed at:-

 

www.spe.org/spe-app/spe/industry/reserves/prms.htm


This information is provided by RNS
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