Regal Provides Saskatchewan Bakken Drilling Update
Regal Energy has commenced the exploitation of its Roncott, Saskatchewan lands by performing a fracture treatment of the Bakken oil formation in a previously suspended vertical well. The well has now been placed on pump and is currently being evaluated. The Company plans to proceed with a multi stage frac on a previously unstimulated horizontal well on the property. There has been significant activity in the Roncott area with the drilling of new horizontal wells into the Bakken formation, and recent land sales for acreage immediately adjacent to Company lands.
The Company holds a 50% working interest in 7 sections of land in this prospect, and plans to actively develop the Bakken oil potential on the acreage. In addition to the exploitation of Roncott, Regal intends to maximize development opportunities on its' existing lands in order to maintain a low debt to cash flow ratio in today's uncertain financial and commodity price environments.
The Company also advised that the amalgamation between Regal and its' wholly owned subsidiary, G2 Resources Inc., has now been completed effective October 1, 2008. The former management of G2 Resources has assumed the responsibility of managing the combined entity. KPMG LLP, the prior auditor of G2 Resources Inc., has been appointed as auditor of Regal and coincidental with this appointment, the former auditors, Deloitte & Touche LLP, have resigned. Regal confirms that there were no reportable events during the
period in which Deloitte & Touche LLP was the auditor to the Company. Regal's current production is estimated at 425 Boe/d, comprised of 1,865 mcf/d and 118 Bbl/d of oil and NGLs for a gas/oil production ratio of 70/30.
The Company's Kaybob 13-35 well has now been returned to production at approximately half of its' productive capability (of 500 mcf/d) and production is expected to increase to 1,200 mcf/d when plant capacity is increased by the plant owner. Tie-in activities at the Company's Wapiti gas project are nearly complete where 2 wells are expected to be placed on production during November, providing an additional 50 Boe/d.
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