Business
Ukrainian Update
Ukrainian Update.
About this update from Enwell Energy Plc
[{"type":"text","content":"\n Regal Petroleum PLC\n16 January 2007\n\n\nImmediate Release 16 January 2007\n\n\n REGAL PETROLEUM PLC\n ('Regal' or 'the Company')\n\n Update on Ukrainian Operations\n\nRegal is pleased to announce an update on the operations being conducted in its\n100% owned Mekhediviska/Golotvschinska (MEX-GOL) and Svyrydivske (SV)\ngas-condensate fields.\n\nLicence History and Terms\n\nThe MEX-GOL and SV field production licences were granted to Regal (100%) in\nJuly 2004 to allow gas and condensate production from the deep Carboniferous\nsandstone reservoirs for a period of 20 years. The validity of the production\nlicences was confirmed by the Supreme Court of Ukraine on 12 December 2006.\n\nProduction\n\nThe Company is presently producing gas and condensate from four wells on the\nMEX-GOL field area and one well on the SV field. Since the wells were re-opened\non 1 August 2006, following the field closures during the licence litigation,\nthe Company has had uninterrupted production from the MEX-GOL and SV fields. The\naverage daily production between 1 August and 31 December 2006 was 3.85 mmcf of\ngas and 447 bbls of condensate (1134 boe). Average realised sales prices over\nthis period were $3.05/mcf for gas and $57.34/bbl for condensate.\n\nWorkovers\n\nAs part of a planned campaign to reactivate dormant wells and increase\nproduction from existing wells the SV-10 well on the SV field was nitrogen\nlifted using coiled tubing in early October 2006 and placed on production test\nin mid November 2006. During the test phase the well has so far produced an\naggregate of 100 mmcf of gas and 1940 bbls of condensate. The produced\ncondensate has been sold along with Regal's other production.\n\nIt is planned that the SV-10 well will be put on permanent production following\nthe installation of separation equipment in the vicinity of the well site to\nremove condensate and water. The processed gas will be tied in to the nearby\nRegal gas pipeline. This new satellite facility, along with the existing main\nprocessing facility, will have the potential for processing gas and condensate\nfrom future workovers and new wells. Based on equipment lead times the tie-in of\nthe SV-10 well is expected to be completed by mid-year 2007.\n\nA total of five other wells have been identified as short-term candidates for\nworkover. Early indications suggest th...