TIDMRPT
RNS Number : 6470J
Regal Petroleum PLC
15 April 2020
15 April 2020
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, as well as the
recently acquired Svystunivsko-Chervonolutskyi (SC) exploration
licence.
Production - Q1 2020
The average daily production of gas, condensate and LPG from the
MEX-GOL, SV and VAS fields for the period from 1 January 2020 to 31
March 2020 was as follows:-
Field Gas Condensate LPG Aggregate
(MMcf/d) (bbl/d) (bbl/d) boepd
Q1 2020 Q1 2019 Q1 2020 Q1 2019 Q1 2020 Q1 2019 Q1 2020 Q1 2019
-------- -------- -------- -------- -------- -------- -------- --------
MEX-GOL
& SV 17.3 14.4 659 549 280 291 3,904 3,283
-------- -------- -------- -------- -------- -------- -------- --------
VAS 3.1 5.0 34 96 - - 604 1,023
-------- -------- -------- -------- -------- -------- -------- --------
Total 20.4 19.4 693 645 280 291 4,508 4,306
-------- -------- -------- -------- -------- -------- -------- --------
Overall production volumes in Q1 2020 increased by approximately
5% compared with Q1 2019, having received a significant boost in
October 2019 from the commencement of production from the MEX-119
well in the MEX-GOL field (see announcement dated 8 October 2019).
However, a decline in production rates from the VAS-10 well in the
later part of 2019 impacted overall production at the VAS field.
During the quarter, compression equipment was installed to increase
production from the VAS-10 well, with a longer term plan to
undertake a workover of the well to access an alternative reservoir
horizon.
Operations
At the MEX-GOL and SV fields, drilling of the SV-54 well was
completed, with the well having reached a final depth of 5,322
metres. Completion operations have now commenced and these are
scheduled to be concluded by the end of Q2 2020, and, subject to
successful testing, production hook-up is anticipated during Q3
2020. The well is a development well, with its primary targets
being the B-22 and B-23 horizons in the Visean formation. Based on
log interpretation, these horizons were encountered during drilling
as forecast.
Planning continues for the spudding of the SV-25 well later in
the year, and planning is also underway for a further well or
sidetracking of an existing well in the SV field.
At the VAS field, planning is continuing for a new well to
explore the Vvdenska (VED) prospect within the VAS licence
area.
New Acquisition
As announced on 24 March 2020, the Group has acquired the entire
issued share capital of LLC Arkona Gas-Energy, which holds a 100%
interest in the SC exploration licence, located in the Poltava
region in north-eastern Ukraine. The SC licence has an area of 97
km(2) , and is approximately 15 km east of the SV field. The
licence is prospective for gas and condensate, and has been the
subject of exploration since the 1980s, with 5 wells having been
drilled on the licence since then, although none of these wells are
currently on production. As with the productive reservoirs in the
SV field, the prospective reservoirs in the licence are Visean, at
depths between 4,600 - 6,000 metres.
The Group plans to apply its existing knowledge of the
subsurface geology in the area to quickly progress development
planning for this licence, and it is envisaged that this will
include the commencement of a new well within the next 12 months,
with drilling and completion operations expected to take up to a
further 12 months.
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 the Company remains
confident that it will ultimately be successful in such legal
proceedings.
Cash Holdings
At 31 March 2020, the Company's cash resources were
approximately $55.5 million, held as to $18.7 million equivalent in
Ukrainian Hryvnia and the balance of $36.8 million equivalent in US
Dollars, Pounds Sterling and Euros.
COVID-19 Pandemic
The Group continues to monitor the evolving situation relating
to the COVID-19 pandemic, and to take any steps necessary to
protect its staff and operations. However, as of the date hereof,
there has been no operational disruption linked to the COVID-19
pandemic, and no material impact is currently envisaged on the
Group's prospects. Nevertheless, the Group remains acutely aware of
the risks, and is taking action to mitigate them where possible,
with the safety of individuals and communities being paramount.
Sergii Glazunov, Chief Executive Officer, said: "We are pleased
with our continued progress with the development of our fields,
where we are seeing strong production, albeit in a lower gas price
environment. We are also looking forward to progressing our
development planning for the SC licence, following the recent
acquisition of LLC Arkona Gas-Energy. Meanwhile, we will continue
to closely monitor the unprecedented developments with the current
COVID-19 pandemic, and although we have seen no material impact on
our operations so far, we have taken and will continue to take all
possible actions to ensure the safety of our employees and local
communities."
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
Bruce Burrows, Finance Director
Strand Hanson Limited Tel: 020 7409 3494
Rory Murphy / Richard Tulloch
Arden Partners plc Tel: 020 7614 5900
Ruari McGirr / Dan Gee-Summons (Corporate
Finance)
Simon Johnson (Corporate Broking)
Citigate Dewe Rogerson Tel: 020 7638 9571
Louise Mason-Rutherford / 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/d barrels per day
boepd barrels of oil equivalent per day
cf cubic feet measured at 20 degrees Celsius and
one atmosphere
km kilometre
km(2) square kilometre
MMcf/d million cubic feet per day
% per cent
$ US Dollars
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END
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