Regal Petroleum Finalises Investments on Ukrainian Fields

Regal Petroleum says that it has finalised the investment programme needed to continue work on its Ukrainian fields in 2012.

The company has secured the investment needed to continue the development of the Mekhediviska Golotvshinska (MEX-GOL) and Svyrydivske (SV) gas and condensate fields in Ukraine. The funding, which Regal says will come from existing cash and operational revenues, will enable the company to drill new wells, work over existing ones and upgrade its processing facilities.

Regal says it has also entered into agreements with local Ukrainian drilling contractors to drill two new wells, SV-53, which will be spudded in February, and MEX-105, which will be spudded in March. The wells will both target Visean reservoirs (B-Sands). SV-53 will be drilled to a depth of 5,450 metres and will take 400 days. MEX-105 will take 350 days and will be drilled to a depth of 5,250 metres.

The company is planning to work over three existing wells in order to enhance production performance. It will also upgrade methanol equipment on two wells. Regal's gas treatment facility will be upgraded as well to enhance overall efficiency and to incorporate compression equipment. Additional upgrade work will provide for liquefied petroleum gas (LPG) recovery.

The company also updated on its gas and condensate production rate for December 2011, with a production of 231,634 m3/d of gas and 49 m3/d of condensate (1,753 boepd in aggregate) for the month.