Regal Petroleum PLC
24 September 2007
--------------------------------------------------------------------------------
Immediate Release 24 September 2007
REGAL PETROLEUM PLC
('Regal' or 'the Company')
Oil Discovery in Egypt
The Company is pleased to announce that a successful well test has been
conducted in the ERB-A-1X well operated by Apache East Ras Budran Corp. LDC
('Apache') in the East Ras Budran ('ERB') Concession in which Regal holds a 25%
working interest. During a 12 hour flow period, the well produced 1,910 bopd
through a 64/64' choke. No water was produced and initial indications are that
the oil has a gravity of approximately 17 degrees API. The well was lifted with
nitrogen delivered to 11,900 feet through coiled tubing and no other stimulation
was required.
The ERB-A-1X well is the first of two commitment wells in the initial
exploration period of the ERB Concession and was spudded on the 15 June 2007.
The well has been drilled to a total depth of 13,615 feet (11,921 feet TVD) to
the primary target in the Darat Limestone. The well has a near horizontal
trajectory at total depth to ensure optimum production potential from the
anticipated reservoir interval.
The ERB-A-1X well has been suspended as a future production well and following
detailed evaluation of the test results, additional stimulation and testing may
be carried out. The drilling rig will now be moved to the second planned
exploration well, ERB-B-1X, which is anticipated to be completed in the fourth
quarter of 2007.
An appraisal well, ERB-A-2X, is under consideration and would be drilled
immediately following the completion of the ERB-B-1X well. Apache has informed
the Company that it plans to submit a Notice of Commercial Discovery to the
Egyptian authorities shortly.
Regal's Chief Executive Officer, Neil Ritson, commented: 'Although it is too
early to assess the reserves potential of the ERB-A-1X field, this is
an exciting discovery from our first well in the ERB Concession. We look
forward to further results from the planned exploration and appraisal of this
Concession which lies onshore in the prolific Gulf of Suez basin.'
For further information, please contact:
Regal Tel: 020 7408 9500
Neil Ritson, Chief Executive Officer
Frank Scolaro, Chairman
Evolution Securities Tel: 020 7071 4300
Robert Collins
Mirabaud Securities Tel: 020 7321 2508
Pav Sanghera
Buchanan Communications Tel: 020 7466 5000
Bobby Morse
Definitions:
bopd barrels of oil per day
TVD true vertical depth
In accordance with the guidelines of the AIM market of the London Stock
Exchange, Neil Ritson BSc (Hons) Geophysics, FGS, Chief Executive Officer of
Regal Petroleum plc, is the qualified person that has reviewed the technical
information contained in this press release.
This information is provided by RNS
The company news service from the London Stock Exchange