Regal Petroleum Says Romanian Exploration Well a Dry Hole

Regal Petroleum's exploration well (RSD-1) in its Suceava license reached a total depth of 1,248 meters but failed to encounter commercial quantities of hydrocarbons. The well is being plugged and abandoned.

A comprehensive suite of advanced wireline log data has been acquired and the well has been completed ahead of time and under budget.

Exploration Director Richard Hardman said "The Suceava Block, located on the Moldavia Platform, is a 4,103 square kilometer exploration, development and production license area (equivalent to 20 North Sea blocks). This region contains several large commercial gas and condensate fields. Whilst our first well, SE-1, flowed gas from relatively thin sands, our second, RSD-1, has encountered a number of good quality sands".

He went on to say "Whilst the result of this exploration well is disappointing, we have acquired a large quantity of high quality and useful technical data which is a prerequisite to a proper understanding of the block and the whole region. This technical data will be utilised in our continuing exploration program in 2006, including the drilling of further wells. We remain confident that this block has the potential to yield commercial reserves".