Gas Discovered in the Barlad Concession in Romania

Regal says that the drilling of the first of its planned exploration wells, RBN-4, in the Barlad Concession in Romania, where the company holds a 100% working interest, has been successfully completed to a total depth of 973 meters.

The well has been logged and the presence of gas within three sandstone intervals totaling 11 meters of net reservoir within the prospective Sarmatian formation has been detected. Additional gas-bearing siltstone intervals of approximately 14 meters have also been identified at a level known to be productive in the nearby Roman gas field.

This well will now be suspended and the Dafora F-100 drilling rig moved to the second planned exploration well, RBN-3, which is located approximately 5 kilometers to the northwest. The completion and flow testing of RBN-4 will be undertaken with a lighter, lower cost, work-over rig once this equipment has been mobilized, which is anticipated prior to the end of 2007.

The RBN-3 well is also planned to evaluate a Sarmatian formation gas prospect and is estimated to take approximately 20 days to drill at a cost of approximately US$1.1 million. P> "Whilst it is too early to quantify the volume of gas that has been discovered and whether a commercial flow rate can be achieved, the results of the well are similar to those expected and are encouraging," said Neil Ritson, Regal's CEO.