Regal Petroleum PLC Ukraine Update (5796E)

TIDMRPT

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             Condensate              LPG              Aggregate 
                 (m(3) /d)           (m(3) /d)           (m(3) /d)             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: [phone] 
 Chris Hopkinson, Chairman 
 Sergii Glazunov, Chief Executive Officer 
 
 Strand Hanson Limited                      Tel: [phone] 
 Rory Murphy / Richard Tulloch 
 
 Citigate Dewe Rogerson                     Tel: [phone] 
 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 
               -------------------------- 
 m(3) /d        cubic metres per day 
               -------------------------- 
 

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July 05, 2019 02:00 ET (06:00 GMT)