Regal Petroleum started trading on AIM recently. With the help of London broker
Evolution Beeson Gregory; Regal raised 10 million valuing the company at
34million.

Regal is raised the money to increase production in the so-called Chernihiv
field in Ukraine. Regal currently has a 75/25 joint venture with Chernihiv a
state owned exploration company and drilling enterprise. The Chernihiv field is
situated in the most prolific gas and condensate region of the Ukraine, the
Dneiper-Donets Basin. This Basin currently produces 90 per cent of Ukraine’s
gas and condensate. An independent report estimates that the Chernihiv field
has a total of proven and probable reserves of approximately 905bn cubic feet
of gas and 51.52 million barrels of condensate.

Over the years 18 exploratory wells have been drilled. Of these wells 12 have
been flow tested and demonstrated that commercial quantities of gas can be
produced.Regal says that a work over of the Mex- 3 well last July meant the
group commenced commercial production in August 2002. To increase production
rapidly Regal plans to drill more wells and work over old ones. It hopes to
have three wells in production by the end of 2003.





Corporate website : www.regalpetroleum.com

Glad I sold earlier but still on the watchlist....

Not the best piece of news today, unfortunately. At least they're honest and say it will be difficult - damned right. All they say is "deep" so it must be down at perforation depth??? Dunno.

I get the impression they're disappointed with the flowrate all round. Quite rightly IMO. It'll take some time to recoup the cost of drilling such a deep, long well. Production before winter is a good thing, mind, depsite the low flowrate

Any idea which way the sp is going to go ?, I would think that the sp will drift back to the upper eighties because the market cap is 357 million pounds : that's a lot (if that's correct).

dunno rf but dont care short term........the sp will bounce again soon as it was 120p not that long ago, it might go into 80s though and if it does i'll buy more

Best of luck, marni. Think I'll watch from the sidelines for now.

if i sell anyway, i will be deep into CGT and cant imagine these under 60p again.....so will hold into next year at least

marni .... not the greatest logic, not least because you only pay tax on profits, and surely even you have some stinkers which you could/should sell to minimise any liability

thats including selling ALL my losers! you just dont take my tips otherwise you would be in same quandary.

CGT - horrible fact of life, indeed.

have plenty of c/f losses from the good old dotcom days and even last year ..... you, of course, got out well ahead of the curve, so do not have that ersatz luxury

=======
looks as though retrace to 60p may not be so far away after all

Double-top syas 80p I guess.

I'm intrigued by your logic, marni. It's a long way to get to the end of the tax year; we're only halfway through it now. Why not bank profits as you never know what might happen for the next 6 months? Just a thought.

buy at 60, sell at 120 gives tax liability of 24 at 40% tax rate = 50/60% post-tax return ..... not bad!

I was informed, maybe wrongly that it might be 20% coming soon.....

if so, would not be until next tax year anyway, and sure as hell no one knows what might be in store then anyway

seymour pierce
Regal has provided an update on its three new-generation wells in the Ukraine. MEX-106 is onstream and producing gas and condensate at good rates from one zone in the B Sands. The company had expected a further sequence in the B Sands to produce but as yet its contribution has been limited and Regal is conducting a review as to its likely future productivity. Mechanical problems have, thus far, prevented testing of the lower T and D Sands. On well SV-58, Regal is continuing with completion work across all the identified gas zones ahead of running a testing programme. Drilling on the third new-generation well (SV-61) is progressing to plan. These are deep, complex and high pressure wells that have to be handled with care. The delays are substantially mechanical issues and do not detract from the reserve upside story. BUY.

Date: 7 October, 2009
Broker: Seymour Pierce
Company: Regal Petroleum


Recommendation:
Retain Buy price price target 220p

InterMarket Stock's recommendation rating:
Buy

marni do you have a link to the seymour pierce price / reccomendation pls? cheers

dont worry marni - thanks i have found this on intermarkets - well spotted cheers

so much for 80p or so.......actually i bought more at 91p........reserves are huge here for sp involved

exactly - i will be holding rpt for sometime - from here i foresee more good news - it will also jump when that small block is cleared soon - then up and up and up imo