Regal Petroleum PLC
05 October 2006
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Immediate Release 5 October 2006
REGAL PETROLEUM PLC
('Regal' or 'the Company')
Joint Venture on the East Ras Budran Concession, Egypt
with Apache Khalda Corporation
Regal is pleased to announce that Regal and Apache Khalda Corporation LDC
('Apache Khalda') have entered into a joint venture in respect of Regal's East
Ras Budran Concession ('ERB Concession') in Egypt.
Regal currently holds a 100% interest in the ERB Concession and Apache Khalda
has agreed a farm-in for a 75% interest in the ERB Concession upon Apache Khalda
paying approximately $4.85 million representing a proportionate re-imbursement
of back costs expended by Regal on this Concession. Regal and Apache Khalda have
agreed a future exploration programme which includes a 3D seismic survey and the
drilling of 2 wells on the Concession with a total programme cost in excess of
$12 million. Apache Khalda will be the operator of the Concession for the
future, subject to Egyptian Government approval of the transaction. Regal and
Apache Khalda will fund future activities on the Concession in proportion to
their respective interests.
The ERB Concession is an onshore exploration block in the East Ras Budran Area,
Western Sinai Peninsula, Gulf of Suez, Egypt with an area of 521 square
kilometres. The southern part of the block is a flat semi-desert, the Baba
Plain, whilst the north of the block comprises low lying mountains.
Apache Khalda is a subsidiary of US-based Apache Corporation, one of the largest
oil and gas operators in Egypt. Apache Corporation, which also operates in the
United States, Canada, the United Kingdom sector of the North Sea, Australia and
Argentina, is listed on the New York Stock Exchange and NASDAQ with an
approximate market capitalisation of $20 billion.
For further information, please contact:
Regal Tel: 020 7408 9500
Roger Phillips, Finance Director
Frank Scolaro, Non-executive Director
This information is provided by RNS
The company news service from the London Stock Exchange