Regal Petroleum doubles production from SV-58 after successful well intervention

Regal Petroleum (AIM: RPT) has increased production by 100% from the SV-58 well in the Svyrydivske (SV) gas and condensate field in Ukraine, following a number of additional well interventions. SV-61 has now been successfully completed and the well is being tied-in for testing and production, whilst work is progressing for SV-66, SV-69, MEX-106 and MEX-120.

As at 1 April 2010, SV-58’s production rates were 114,320 cubic metres per day (m3/d) of gas and 20m3/d condensate (800 boepd). Consequently as at 1 April 2010, the total daily field production rate was 2,537 barrels oil equivalent per day (boepd), reflecting 353,744m3/d of gas and 72.5 m3/d of condensate.

Investors responded to the news positively, with Regal Petroleum shares rising over 7% to trade around 69p per share on London’s AIM market in early deals.

Regal’s primary focus are its Ukrainian assets, consisting mainly of the Mekhediviska-Golotvschinska (MEX-GOL) and Svyrydivske (SV) gas and condensate fields. The upper layers of these combined fields are known as the B-sands and are of Visean age. The company’s extensive seismic work on deeper layers of the fields underneath the B-sands in 2007 and 2008 discovered the T-sands (Tournaisian age) and D-sands (Devonian age).

At the SV-58 well, Regal trialled an abrasive jet perforation technique in January 2010 and this has been 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. 

Regal said that the T and D-sands in this well have not yet been perforated using these advanced techniques.

Elsewhere in Svyrydivske, SV-61 was recently completed and on 29 March Rig 5914 was released, the well will be tied-in for testing and production once the rig has been removed and testing is expected to commence in late April/early May. The SV-66 well successfully penetrated the B-sand reservoir sequence and drilling is continuing at a depth of 5,789 metres (at 1 April). SV-66 is being drilled by Rig 5915, which will subsequently be mobilised to SV-69, where the well site has already been prepared.

At MEX-GOL, the MEX-106 has been taken off production to allow well intervention activities to be undertaken. Whilst the well site at MEX-120 has been prepared to accept Rig 5914, and the spudding is anticipated to take place later this month.

Regal also provided an update on its operations in Romania, where the company has completed the acquisition and processing of 104.7km of 2D seismic in the Barlad exploration concession. According to Regal, the acquisition provided good quality data and it has identified a drilling location to the west of the RBN-4 gas discovery, made in December 2007.

An exploration well is currently planned for Q3 2010 on the Barlad concession.

Regal holds two licences in the north eastern part of Romania. The Suceava and Barlad blocks which are located in the Carpathian Mountains on the Moldavian Platform, to the east of producing fields and infrastructure.

The company also has operations in Egypt, with a 25% interest in the East Ran Budran concession which has been appraised and oil was discovered on test. Work is ongoing and the joint venture partners, Apache Khalda Corporation estimate there to be 5.2 million barrels of oil.

http://www.proactiveinvestors.com.au/companies/news/6226/regal-petroleum-doubles-production-from-sv-58-after-successful-well-intervention-6226.html