Regal Petroleum's primary assets are two large gas and condensate fields in Ukraine - the Mekhediviska-Golotvschinska (MEX-GOL) field and the Svyrydivske (SV) field located in the prolific Dneipner-Donets basin in the north east of Ukraine. Regal is the operator of the assets and there are currently 5 production wells on the assets. Secondary to this, but still significant, are two large exploration blocks in Romania, the Barlad and Suceava Blocks, where Regal holds a 100% and 50% interest respectively.
Regal Petroleum also has a 25% non-operated joint venture in Egypt with Apache Khalda Corporation LDC, where an exploration well tested positively for oil in September 2007 and was tied in as a producing well in June 2008.
08/02/12
Holding(s) in Company04/01/12
Ukraine Operations Update28/12/11
Holding(s) in Company23/12/11
Replacement: Holding(s) in Company22/12/11
Holding(s) in Company
28/09/11
Regal Petroleum is now focusing its attentions revamping production at its Ukrainian gas projects after it managed to overcome its legal and regulatory problems in the past six months. The emphasis will initially be on the shallower gas reservoirs, which require smaller rigs, and boosting cash generation.
18/01/11
The closely followed takeover story was stirred up once again after Regal revealed the details of two alternative proposals put forward by Ukrainian oligarch Victor Pinchuk. Whilst Pinchuk's proposals ‘out-bid’ Energees Management’s recommended 24 pence offer, the oligarch is yet to make a firm offer, and the clock is ticking.
13/12/10
A month ago it was friendless and mired in a regulatory spat so serious that it was forced to shut down its gas operations in the Ukraine. Now it has recommended a £77 million bid and a local oligarch also wants to buy them. Here we look at the potential for an all out bidding war, and the main players in this drama surrounding one the market’s most colourful companies.
13/12/10
Is there a light at the end of the tunnel for Regal Petroleum shareholders? After a tough few months, in which technical and regulatory problems have brought work to a standstill, it has now recommended a £77 million takeover bid, but a local oligarch is lining up an alternative proposal.
25/11/10
Shares shot up 50 percent as it became a bid target. Regal confirmed that it has received a number of approaches and it is in preliminary talks. Speculation is rife surrounding the source of the bids, and investors are eagerly awaiting further details.
04/01/12
Regal Petroleum unveils investment programme for 201202/12/11
Regal Petroleum increases gas production in October and November08/08/11
Regal Petroleum confirms it can continue activities in Ukraine27/07/11
Regal Petroleum’s shares jump after court ruling in its favour11/07/11
Regal Petroleum to resume production in Ukraine
29/01/2009
Our Assets
Regal's assets currently lie in three geographical locations - Ukraine, Romania and Egypt.
The Company's primary assets are two large gas and condensate fields in Ukraine - the Mekhediviska-Golotvschinska (MEX-GOL) field and the Svyrydivske (SV) field located in the prolific Dneipner-Donets basin in the north east of Ukraine. Regal is the operator of the assets and there are currently 5 production wells on the assets. Average daily production in the year ended 31 December 2008 was 749 barrels of oil equivalent per day. The Company is presently implementing a field development plan including a work-over programme and a significant drilling campaign. In addition 3D seismic data has been acquired and interpreted and a sub-surface model is being developed.
Secondary to this, but still significant, are two large exploration blocks in Romania, the Barlad and Suceava Blocks, where Regal holds a 100% and 50% interest respectively. Gas was discovered on both license areas in Romania in late 2007 and further exploration and appraisal work is underway.
The Company also has a 25% non-operated joint venture in Egypt with Apache Khalda Corporation LDC, where an exploration well tested positively for oil in September 2007 and has been tied in as a producing well.
Our Strategy
Following the resolution of various legal issues in Ukraine in December 2006 and the transformation of the management team, the Company is focused mainly on developing the Ukrainian gas and condensate interests. A detailed field development plan provides the platform for the business and, following equity fundraisings totally approximately US$310 million (gross) in 2008 and 2009, the Company is focussed on the development of its fields in Ukraine. In addition two brand new top-drive drilling rigs, contracted from Saipem S.p.A, have been imported into Ukraine and now undertaking the Company's development drilling programme.
The Company is targeting increased production in Ukraine through its field development plans. In addition Regal is planning to drill into deeper targets with the hope of unlocking potential reserves upside.
The Company is also continuing to explore and appraise its assets in Romania and Egypt.
Assets Overview
Regal Petroleum Corporation Ltd holds a 100% working interest and is operator of the Mekhediviska-Golotvshinska (MEX-GOL) and Svyrydivske (SV) fields onshore Ukraine, which extend over a total combined area of 269km2.
The MEX-GOL and SV fields are situated in north-eastern Ukraine, 200km east of Kiev. Geologically, the fields are located in the prolific Dnieper Donets sedimentary basin which contains approximately 90% of all Ukrainian gas and condensate production.
Production
In 2008, Regal operated five producing wells. The Company's average daily production over the 12 month period to 31 December 2008 was 3.53 MMcf/d (100,085 m3/d) of gas and 160 bpd (25.5 m3/d) of condensate which equates to a combined oil equivalent of 749 boepd.
Assets Overview
Regal holds two licences in the north eastern part of Romania. The Suceava and Barlad blocks are located to the east of the producing oil and gas fields and infrastructure in the Carpathian Mountains on the Moldavian Platform. These blocks cover 4,103km2 and 6,285km2 respectively, with potential hydrocarbons at shallow horizons in the range of 500m to 1,500m. Regal holds a 100% working interest and is operator of the Barlad block. The Suceava block, adjacent and directly north of the Balard block, is managed via a 50/50 joint venture with Aurelian Oil and Gas Plc ('Aurelian') as operator.
On the Barlad licence, the evaluation of 1,122km of 2D seismic has been acquired and interpreted and three exploration wells have been drilled. The first well, RBN-4, which completed in 29 October 2007, discovered gas which was tested at a maximum rate of 3.74 MMcf/d (105,900 m3/d). The second well, RBN-3, and the third well, RBN-S1 were unsuccessful and was plugged and abandoned.
On the Suceava licence, 160km of 2D seismic has been acquired and interpreted and one exploration well was drilled by Aurelian to fulfil its joint venture earn-in obligations. The Dornesti Sud-1 well discovered gas and was tested at an average rate of 0.88 MMcf/d (24,840 m3/d) in December 2007. Consideration is being given to a possible tie in of this well to the Bilca Gas Plant, operated by Aurelian, on its adjacent Brodina Block EIII-1.
Romanian Outlook
The Company is cautiously optimistic that the Romanian assets will develop into an interesting opportunity. As the main objectives are relatively shallow, the drilling costs are expected to be considerably lower than in Ukraine. We are hopeful that as a result of the current discoveries, there is an opportunity of early production from these assets.
East Ras Budran Concession (working interest 25%)
Regal is a partner and has a 25% interest in the East Ras Budran concession on the western coast of Sinai in the Gulf of Suez. The concession is located close to a number of large oil fields and there is available ullage in local processing and export facilities.
Apache Khalda Corporation LDC ('Apache'), the Company's joint venture partner in the East Ras Budran concession, acquired a 3D seismic survey in early 2007, and since then three exploration wells have been drilled on the concession. The first of these, ERB-A-1X, was spudded in June 2007. This well reached its target depth (11,921 feet TVD) in the Darat Limestone and was flow tested for a 12 hour period and produced at an average rate of 1,901 bopd. Well site estimates of an average flow rate of 1,910 bopd and oil gravity of approximately 17 degree API have subsequently been confirmed by the operator as 1,901 bopd and 16-16.2 degree API respectively. This well has been tied back for production.
The second exploration well, ERB-B-1X, was drilled using the same rig, to explore potential reservoirs in a different part of the concession. The well was drilled to a total depth of 5,146 feet into basement, several zones in the well had oil shows and the well was subsequently tested without a productive flow of oil being achieved. The well was plugged and abandoned. A third exploration well, ERB-B-2X was spudded in February 2008 and on completion was tested but did not produce any hydrocarbons on test and was subsequently plugged and abandoned.
Egyptian Out look
We look forward to reaping the benefits from the production tie-in of the ERB-A-1X discovery as well as executing a challenging further work and exploration programme with our partner Apache.
Keith Henry, FREng - Non-Executive Chairman
Robert Wilde - Finance Director
Hendrikus (Harry) Verkuil - Chief Operating Officer
Adrian Coates - Non-Executive Director
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Dr Alastair Macleod Graham, Non-Executive Director
Nominated Advisors
Strand Hanson Limited
26 Mount Row
London W1K 3SQ
Auditors
Deloitte & Touche LLP
2 New Street Square
London EC4A 3BZ
Bankers
Bank of Scotland Corporate
London Chief Office
155 Bishopsgate
London EC2M 3YB
Brokers
Merrill Lynch
Merrill Lynch Financial Centre
2 King Edward Street
London EC1A 1HQ
Public Relations Advisors
Citigate Dewe Rogerson
3 London Wall Buildings
London EC2M 5SY
Share Registry
Computershare Investor Services plc
PO Box 82
The Pavilions
Bridgewater Road
Bristol BS99 7NH
Solicitors
Pinsent Masons
City Point
1 Ropemaker Street
London EC2Y 9AH
Regal Petroleum plc
Lansdowne House
57 Berkeley Square
London W1J 6ER
United Kingdom
Facsimile: +44 (0)20 7408 9501
Email: info@regalpetroleum.co.uk
The following parties had interests of greater than 3% of the issued share capital of the Company as at 31 December 2010: So far as the Company is aware the percentage of the issued share capital that is not in public hands is 0.18%.
Substantial Shareholder Number of shares % of issued ordinary share capital
Renaissance Securities (Cyprus) Limited 35,003,465 10.99
Pope Asset Management
21,288,201
6.69
Hadron Capital LLP
16,178,721
5.08
Bemolle Trading Ltd
15,749,382
4.95
Blackrock Investment Management
15,656,805
4.92
Capital Research and Management Company
14,301,342
4.49
SEB Asset Management
13,572,669
4.26
55 North Emerging Europe Long/Short Fund L.P
12,780,000
4.01
Morgan Stanley Securities
12,746,410
4.00
Ceska Sporitelna
12,636,067
3.97
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Updated on 4th February 2011
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