Regal Briefs Operations in Ukraine, Romania

Regal announced a further update on its operations in Ukraine and Romania. 

UKRAINE 

SV-58 WELL - PRODUCTION INCREASED BY 100% 

The rate of production from SV-58 has increased by 100% since the level announced on 11 January 2010 as a result of a number of additional well interventions. 

The abrasive jet perforation technique, which was trialled in SV-58 in January 2010, has now been successfully completed across all of the remaining B-sand target zones. The jet perforations were subsequently stimulated using other advanced perforating techniques which established a near-wellbore fracture network to further enhance gas deliverability from the reservoirs. The T and D-sands in this well have not yet been perforated using these advanced techniques. 

The highest instantaneous flow rate recorded during the well test from the B-sands was 256,800 m3/d gas and 19.68 m3/d condensate using a 10 mm choke, after the well had been shut-in for a 48 hour period. 

The well has now been stabilized and put into production, and as at April 1, 2010, the production rates were 114,320 m3/d gas and 20 m3/d condensate (800 boepd). This represents an improvement of 100% over the rates previously reported in January 2010.

STATUS OF OTHER WELLS 

SV-61 WELL 

SV-61 was successfully completed and Rig 5914 was released on March 29, 2010. The well will be tied-in for testing and production once the rig has been removed from the location. Testing is expected to commence in late April/early May 2010.

SV-66 WELL The well successfully penetrated the B-sand reservoir sequence and the 7" liner was set as planned. Drilling, utilizing Rig 5915, is continuing and as at April 1, 2010 was at a depth of 5,789 meters. 

SV-69 WELL 

The well site has been prepared to accept Rig 5915 for the spud of SV-69 following completion of SV-66.

MEX-106 WELL 

The well is being taken off production to allow well intervention activities to be undertaken. 

MEX-120 WELL 

The well site has been prepared to accept Rig 5914 for rig-up and the spud of MEX-120 is anticipated later this month. 

PRODUCTION 

The total daily field production rates as at 1 April 2010 were 2,537 boepd (353,744 m3/d of gas and 72.5 m3/d of condensate). 

ROMANIA

Regal has completed the acquisition and processing of 104.7 km of 2D seismic in the Barlad exploration concession (Regal 100%) in eastern Romania. The data is of good quality and has allowed a drilling location to be identified to the west of the RBN-4 gas discovery made in December 2007. The remaining work program commitment on the Barlad concession is one exploration well, which is currently planned for Q3 2010.

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