Regal Petroleum PLC Reserves & Resources Update (2354W)

TIDMRPT

RNS Number : 2354W

Regal Petroleum PLC

31 July 2018

31 July 2018

REGAL PETROLEUM PLC

("Regal" or the "Company")

Reserves & Resources Update

Regal Petroleum plc, the AIM-quoted (RPT) oil and gas exploration and production group, is pleased to announce 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, DeGolyer and MacNaughton ("D & M"), to prepare an updated assessment of the remaining Reserves and Contingent Resources attributable to the Company's MEX-GOL and SV fields as of 31 December 2017 (the "Report"). The Report is consistent with Regal's current field development plans, which include the drilling of a further 24 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 of 31 December 2017 in the MEX-GOL and SV fields as follows:-

 
                    Proved        Proved + Probable   Proved + Probable 
                     (1P)                (2P)          + Possible (3P) 
  Gas          121.9 Bscf / 3.5   218.3 Bscf / 6.2    256.5 Bscf / 7.3 
                     Bm(3)              Bm(3)               Bm(3) 
              -----------------  ------------------  ------------------ 
  Condensate   4.3 MMbbl / 514     7.9 MMbbl / 943     9.2 MMbbl / 110 
                    Mtonne              Mtonne              Mtonne 
              -----------------  ------------------  ------------------ 
  LPG          2.8 MMbbl / 233     5.0 MMbbl / 418     5.8 MMbbl / 491 
                    Mtonne              Mtonne              Mtonne 
              -----------------  ------------------  ------------------ 
  Total           27.8 MMboe         50.0 MMboe          58.6 MMboe 
              -----------------  ------------------  ------------------ 
 

The Report estimates the Contingent Resources as of 31 December 2017 in the MEX-GOL and SV fields as follows:-

 
               Contingent Resources   Contingent Resources   Contingent Resources 
                       (1C)                   (2C)                   (3C) 
  Gas            14.7 Bscf / 0.42       38.3 Bscf / 1.08      105.9 Bscf / 3.00 
                       Bm(3)                  Bm(3)                  Bm(3) 
              ---------------------  ---------------------  --------------------- 
  Condensate     1.17 MMbbl / 144       2.8 MMbbl / 343        6.6 MMbbl / 812 
                      Mtonne                 Mtonne                 Mtonne 
              ---------------------  ---------------------  --------------------- 
  Total             3.8 MMboe              9.6 MMboe              25.3 MMboe 
              ---------------------  ---------------------  --------------------- 
 

The MEX-GOL and SV fields contain two main prospective reservoir intervals: the principal reservoirs in the Carboniferous Visean ("B-sands") and the deeper Carboniferous Tournasian ("T-sands"). In the Report, the vast majority of Reserves and Resources are contained in the Visean reservoirs, but D & M has estimated small volumes of Probable and Possible Reserves and Contingent Resources in the deeper Tournasian interval.

The Report provides an update on the Company's Reserves and Resources since the previous Reserves estimation undertaken by ERC Equipoise Limited ("ERCE") as at 31 December 2013 and takes into account data and information gathered since then. This data and information includes the results of the comprehensive re-evaluation study of the geology, geophysics, petroleum engineering and well performance of the fields undertaken by P.D.F. Limited over the last two years and the data obtained from further seismic reprocessing and the drilling of additional wells in the fields.

The Report shows a material increase in the Proved (1P) and Proved + Probable (2P) categories of remaining Reserves from the ERCE 2013 estimates, which were 1.9 MMboe and 11.7 MMboe respectively. These increases reflect a higher level of confidence in the understanding of the subsurface at the fields as a result of the re-evaluation study and new data obtained since 2013, which has led to a revision of the development plan for the fields, including an increase in the number of new wells (from 10 to 24) and an acceleration of the phasing of these new wells.

Sergii Glazunov, Chief Executive Officer said: "Based on this independent assessment, a significant volume of remaining Reserves has been estimated in the MEX-GOL and SV fields. Among other data, the Report takes into consideration the positive outcomes of the latest drilling and workover projects, derived from the successful implementation of efficient drilling and operations technologies. This, in turn, makes us optimistic about the future prospects for the fields. In light of this, we are continuing with further work aimed at providing a comprehensive understanding of our reservoirs, so as to continue to improve the level of confidence in our field development programme."

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] 
 Louise Mason-Rutherford / Elizabeth 
  Kittle 
 

Philip Frank, PhD Geology, Chartered Geologist, FGS, PESGB, 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 
 
 AAPG          American Association of Petroleum Geologists 
 bbl           barrel 
 Bm(3)         thousands of millions of cubic metres 
 boe           one barrel of oil, plus (i) gas converted 
                to oil equivalent using a conversion rate 
                of 5,661 standard cubic feet of gas for 
                each barrel of oil equivalent; (ii) condensate 
                converted to oil equivalent using a conversion 
                rate of one barrel of condensate for each 
                barrel of oil equivalent; and (iii) LPG 
                converted to oil equivalent using a conversion 
                rate of 1.43 barrels of LPG for each barrel 
                of oil equivalent 
 Bscf          thousands of millions of standard cubic 
                feet 
 Gas           sales gas (meaning the total quantity of 
                gas to be produced from the reservoirs, 
                measured at the point of delivery, after 
                reduction for field separation, usage, and 
                other losses) 
 LPG           liquefied petroleum gas 
 m(3)          cubic metres 
 Mtonnes       thousand tonnes 
 MMbbl         million barrels 
 MMboe         million barrels of oil equivalent 
 scf           standard cubic feet measured at 20 degrees 
                Celsius and one atmosphere 
 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

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July 31, 2018 02:01 ET (06:01 GMT)