Regal Achieves Substantial Gas Flow in Romania, Spuds 2nd Exploration

Barlad Concession
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Regal Petroleum initial flow testing of its first exploration well, RBN-4 in the Barlad Concession in Romania, has resulted in a maximum flow rate of 3.74 MMscf/d of dry gas on a 12 mm choke with a flowing tubing head pressure of 49 bar over a 24-hour flow period.

A 4.6 meter interval, between 756.7 meters and 761.3 meters, was perforated and tested and there was minimal water production in the test. This interval is the first of two intervals to be tested on this well and operations are continuing in preparation for the flow testing of a second interval with a planned perforated interval of 12.7 meters between 543.3 meters and 556 meters.

The RBN-4 well was completed to a total depth of 973 meters TVD into the Sarmatian formation. The well was logged and the presence of gas was detected within zones in the Sarmatian formation.

In addition, the Company has spudded its second planned exploration well, RBN-3, on the Barlad Concession. This well is located approximately 5 kilometers to the northwest of the RBN-4 well and is also intended to evaluate a Sarmatian formation gas prospect. The well is estimated to take approximately 20 days to drill at a cost of approximately US$1.1 million.

"This initial test of the first zone of the RBN-4 well is very encouraging and the flow rates achieved are in excess of those expected," said Regal Chairman and CEO David Greer. "This is an area where it is relatively inexpensive to drill wells and connect them up to existing infrastructure for gas sales. The two locations chosen for the RBN-3 and RBN-4 wells were only two prospects identified from several possible leads.

"Regal will now use the results from this well to better understand the potential for other prospects and leads in the concession. We look forward to the test results on the second zone of the RBN-4 well and the successful drilling of the RBN-3 well."


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