Ukraine Update

RNS Number : 5796E
Regal Petroleum PLC
05 July 2019
 

 

5 July 2019

 

REGAL PETROLEUM PLC

 

("Regal" or the "Company")
 

Ukraine Update

 

Regal Petroleum plc (AIM: RPT), the AIM-quoted oil and gas exploration and production group, announces an update of its operational activities in Ukraine, where it operates the Mekhediviska-Golotvshinska (MEX-GOL), Svyrydivske (SV) and Vasyschevskoye (VAS) gas and condensate fields.

 

Production

 

The average daily production of gas, condensate and LPG from the MEX-GOL, SV and VAS fields for the period from 1 April 2019 to 30 June 2019 is as follows:-

 

 

Field

Gas

(m3/d)

Condensate

(m3/d)

LPG

(m3/d)

Aggregate

boepd

 

 

Q2 2019

Q2 2018

Q2 2019

Q2 2018

Q2 2019

Q2 2018

Q2 2019

Q2 2018

 

MEX-GOL & SV

 

385,588

281,599

85.9

55.4

40.5

27.5

3,113

2,220

 

VAS

 

135,435

86,728

12.0

6.2

-

-

960

609

 

Total

 

521,023

368,327

97.9

61.6

40.5

27.5

4,073

2,829

 

 

Operations

 

At the MEX-GOL field, drilling of the MEX-119 well is continuing, having reached a depth of approximately 4,789 metres. The well has a target depth of 4,850 metres, with drilling, completion and testing operations planned to be completed by the end of September 2019 and, subject to successful testing, production hook-up during the fourth quarter of 2019. It is a development well, with its primary target being the B-20 horizon in the Visean formation.

 

At the VAS field, the 3D seismic data that was acquired earlier in the year is currently being processed and interpreted.

 

 

VAS Licence Order for Suspension

 

The Company does not have any further information to report in relation to the Order for suspension relating to the production licence for the VAS field since the announcements made on 12 March 2019 and 19 March 2019 respectively, other than to report that the legal proceedings issued in the Ukrainian Courts to challenge the validity of the Order are ongoing, and that the Company remains confident that it will ultimately be successful in such legal proceedings.

 

Cash Holdings

 

At 30 June 2019, the Company's cash resources were approximately $67.9 million, held as to $28.3 million equivalent in Ukrainian Hryvnia and the balance of $39.6 million equivalent in US Dollars, Pounds Sterling and Euros.

 

Sergii Glazunov, Chief Executive Officer, said: "We are pleased to report a good performance during the second quarter of 2019, with strong production across all our operations in Ukraine. During the second half of the year, we plan to complete the drilling and hook up for production of the new development well, MEX-119, commence drilling a new well in the SV field, and finalise the planning for a further well in the SV field. At the VAS field, the processing and interpreting of the new 3D seismic data and development of a new geological model is expected to be completed by the end of the third quarter, followed by planning for a new well at the field. Additionally, the updated assessment of the remaining reserves and resources at the VAS field is expected to be completed later this month."

"The Company is well positioned for further growth, both from organic development of existing fields and potential acquisitions of new prospects. Following the acquisition of additional shares by the Company's majority shareholder, Pelidona Services Ltd, the Company continues to operate as previously, and is pleased by the stated commitment from Pelidona to the continued maintenance of high standards of corporate governance as well as to the long-term growth and development of the Company for the benefit of all shareholders."

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.

 

 

For further information, please contact:

 

Regal Petroleum plc

Tel: 020 3427 3550 

Chris Hopkinson, Chairman

 

Sergii Glazunov, Chief Executive Officer

 

 

 

Strand Hanson Limited

Tel: 020 7409 3494

Rory Murphy / Richard Tulloch

 

 

 

Citigate Dewe Rogerson

Tel: 020 7638 9571

Nick Hayns / Elizabeth Kittle

 

 

 

Dmitry Sazonenko, MSc Geology, MSc Petroleum Engineering, Member of AAPG, SPE and EAGE, Director of 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:

 

bbl

barrels

boepd

barrels of oil equivalent per day

LPG

liquefied petroleum gas

m3/d

cubic metres per day

 


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