Regal Petroleum reports higher gas production from SV-58 well in Ukraine after successful perforation, expects further improvement

Regal Petroleum (AIM: RPT) said its current total daily field production rates went up to 2,166 boepd (barrels of oil per day) as production from the SV-58 well at the Svyrydivske gas and condensate field in Ukraine improved after a successful abrasive perforation trial.

The company said production rates would improve further in the near future due to the earlier than planned cessation of drilling in the SV-61 6” hole section and parallel abrasive perforation operations planned in both SV-61 and SV-58 wells.

Equipment including 6,200 metres of coiled tubing is currently being mobilised to the SV-58 well to access and enable perforation of the remaining 75 metres of target reservoir in the B-sands during February 2010.

Drilling in the 6” section in the SV-61 well was suspended to prioritize the commencement of B-sand gas production from the well and consequent cashflow, while horizons deeper than the cored T-sand section in SV-61 will be tested in the nearby SV-66 well, which will be followed by an economic assessment to determine what remedial action may be taken to further test the T-sand and D-sand sequences in SV-61. Production from SV-61 is expected to commence ahead of plan as a result of the implementation of the abrasive perforation technique.

Regal also provided an update on the MEX-106 well at the Golotvshinska field, where the upcoming removal of the small remaining 3 metre section of the fish is expected to enable the T-sand and D-sand abrasive perforation and test programme to resume in February to add production from these horizons to the existing flow in the well, which is currently producing from the B-sands only.

Last week, the independent oil and gas exploration and production company with interests in Ukraine, Romania and Egypt, said it appointed Dr Alastair Macleod Graham as a non-executive director with immediate effect. 

Graham has over 29 years experience in the oil and gas industry having held a number of senior management roles with BP PLC (LSE: BP), including UK business development manager, upstream mergers and acquisitions manager, positions at Sidanco in Russia, for BP's Southern North Sea gas production business and for BP Exploration Alaska and, most recently, leader of BP's Russia business unit and its shareholder representative for the TNK-BP joint venture.  http://www.proactiveinvestors.co.uk/companies/news/12417/regal-petroleum-reports-higher-gas-production-from-sv-58-well-in-ukraine-after-successful-perforation-expects-further-improvement-12417.html