Business
Strategic Review
Strategic Review.
About this update from Enwell Energy Plc
[{"type":"text","content":"\n RNS Number : 7939X Regal Petroleum PLC 13 December 2010 \n \n\nNOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN, INTO OR FROM\nANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF SUCH JURISDICTION\nRegal Petroleum plc\n(\"Regal\" or the \"Company\")\n \n10 December 2010\n \nUPDATE RE: STRATEGIC REVIEW, OPERATIONS & CORPORATE ACTIVITY\n \nRegal, the AIM-listed oil and gas exploration and production group (symbol: RPT), provides an update on corporate activity and operations as follows.\n \nFollowing the disappointing results of the Company's 2009/2010 drilling campaign at its Mekhediviska-Golotvschinska (\"MEX-GOL\") and Svyrydivske (\"SV\") gas fields in Ukraine, on 30 September 2010 the Company announced a strategic review of reservoir performance and its business plans. \n \nThe results of the review, including independent technical studies and analysis of well test results, have largely attributed the disappointing well flow-rates to the lower permeabilities of a substantial portion of the gas-bearing sandstones as defined by wireline logs, which are also vulnerable to liquid saturation blocking when exposed to overbalanced conditions.\n \nThe various perforation techniques, adopted to date, during the drilling campaign have failed to deliver significant gas inflow from these lower-permeability intervals and the review has concluded that an alternative approach is, therefore, required. Hydraulic fracturing is a key completion technology that remains to be deployed and tested in these fields and which has the potential to improve flow-rates from these tighter gas sands. \n \nThe review has, therefore, concluded that development of the Company's Ukrainian asset will require further technical studies, including the trialling of alternative technologies for well completion, including hydraulic fracturing, following which the impact, if any, on the Company's estimated reserves and the investment capital required to fund future development can be determined.\n \nSince the current plan does not envisage further drilling in the short term and that future wells would be drilled only to B-Sand reservoirs, the Company decided to complete its discussions with Saipem SpA (\"Saipem\") with regard to both the utilisation of the drilling rigs operated by Sai...