Regal Petroleum plc has announced its unaudited results for the six months ended June 30, 2008.
- Turnover of $6.7 million is up 3% over the equivalent period last year (2007: $6.5 million) and was derived entirely from Ukraine gas and condensate sales.
- Realized prices for gas in Ukraine have increased by 38% from those prevailing in 2007.
- Loss before tax cut to $2.9 million (2007: $10.0 million).
- Cash held, just after period end, of $173.9 million, comprising $134.4 million as at June 30, 2008 plus $39.5 million (net) raised from a placing on July 3, 2008.
- No debt - borrowings at December 31, 2007 repaid.
- Capital expenditure of $13.9 million; majority invested in Ukraine field development, drilling and the acquisition of 3-D Seismic on the SV field, plus 2D seismic in Romania for appraisal of the 2007 gas discovery.
- Two brand-new, US built, 2,000 hp top-drive drilling rigs contracted for next five years from Saipem. The first rig arrived in Ukraine in September 2008 with the second expected in early October 2008. These rigs are scheduled to spud the first two new-generation deep wells, targeting the T-sands, before year end.
- 3D seismic acquisition over virtually the whole of MEX-GOL/SV fields now complete and reservoir modelling in advanced state.
- Well MEX 103 spudded in October 2007, reached target depth ahead of schedule in August 2008 and is due to be brought into production in Q4 2008.
- One work-over is already completed and a further two work-overs are on schedule to be completed and brought back into production in Q4 2008.
- On schedule to significantly increase daily production rates by year end.
- Following the RBN-4 gas discovery on the Barlad licence (Regal 100%), which tested at a maximum rate of 3.74 MMscf/d, a further 122km of 2D seismic has been acquired and a sizeable trap has been delineated.
- The first of up to three appraisal wells is due to spud by end September 2008. If successful, these wells will be kept as producing wells in a field development plan for 2009. Wells are relatively, shallow, quick to drill and inexpensive.
- The ERB-A-1X oil discovery on the East Ras Budran concession (Regal 25% non-operated) was tied in as production test well in June 2008 and flowed at various rates with assistance of a down-hole pump.
David Greer, Chief Executive Officer, said, "Regal has delivered what it set out to do in the first half of this year and more. With no debt, a significant cash balance, validated production licenses, a completed seismic program and new powerful top drive rigs in Ukraine plus an exciting appraisal program in Romania, the Company is well placed to grow production and reserves on schedule in a climate of rising gas prices. We are firmly on track to fully realize Regal's potential."