Regal Petroleum PLC
1 July 2004
Immediate Release 1 July 2004
REGAL PETROLEUM PLC
('Regal' or 'the Company')
Production Licences Awarded in Ukraine
The Directors of Regal are pleased to announce, that following the successful
completion of all technical research and investment requirements, Regal has been
awarded a 100 per cent. interest in two new Production Licences in Ukraine.
Production Licence No 3334, issued to Regal by the State Committee on Natural
Resources of Ukraine on 30 June 2004, is for the Mekhedivsko-Golotobshcinske gas
field ('MEX-GOL'), which is located 15km north-west of Lokvitsa and
approximately 220km east of Kiev. The MEX-GOL field covers an area of 129 square
kilometres.
Production Licence No 3335, also issued to Regal on 30 June 2004, is for the
Svyrydivske gas field ('SV'), which is to the east and adjacent to the MEX-GOL
area. The SV field covers an area of 140 square kilometres.
20 Year Term. Both Licences are valid for 20 years and allow for the full
exploitation and production of free natural gas, condensate, ethane, propane and
butane from the MEX-GOL and SV fields, which contain proven and probable
reserves of 25.1 Bm3 of gas and 5.83MMm3 of condensate (194 MMboe combined).
100 per cent. interest. In awarding a 100 per cent. interest in the Production
Licences to Regal, the State Committee on Natural Resources has recognised the
commitment that Regal has made towards the successful completion of all
technical research and investment requirements, including the construction of a
new gas plant and export pipeline.
Regal previously operated and produced from the above gas fields through a 75
per cent. interest in a joint venture partnership with the State controlled
exploration and drilling company, Chernihivnaftogaz, which held a pilot
production licence on behalf of the joint venture. The pilot licence allowed for
production of up to 10 per cent. of the total reserves whilst the research was
being completed.
Regal is the first foreign company to be awarded a Production Licence in Ukraine
for the exploitation and production of gas and condensate.
Current production is being maintained at circa 800,000m3 of gas equivalent per
day until the upgrading of the gas plant is completed (scheduled for the end of
November 2004).
Commenting on the Production Licences, Frank Timis, Chairman of Regal, said:
'Regal is delivering significant gas and condensate production levels through
its fully owned production, processing and pipeline infrastructure in the
Ukraine. This development, combined with the awarding of Production Licences,
fully validates Regal's long term strategy towards this key asset'
For further information please contact:
Regal Tel: 020 7647 6622
Frank Timis, Executive Chairman
Bill Humphries, Non-executive Director
Buchanan Communications Tel: 020 7466 5000
Bobby Morse / Catherine Miles
This information is provided by RNS
The company news service from the London Stock Exchange
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