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

a picture is worth 1000 words

General knock down today.....right across the board....

indeed, though i dare say you can work out partly why i posted and have also been fortunate enough to avoid any dealings at all in any companies in which timis has his dirty little fingers

I sold out on one of the spikes....I'm praying that ftse is not going back into the 4900's again....

watch for 4950

aggghh....

i know this is off-thread, but the latest (26/10) from my chartist guru was ..... ftse currently 5242 - stay long with 5768 target or stop-loss below 4950

Perhaps this is just one of those days.....I've bought one or two things today as everybody seems to be taking to the hills....check out Aminex (AEX)...big wildcat drilling coming up with ? Tullow Oil of all people...looks promising.

big pull back has been overdue, but as always, impossible to forecast ..... glad i have regularly pulled money out of the markets over the last 6 months, so though have taken a bath today, along with many others, there is already a good slab of crystalised profits safely in the bank

I think there will be a sharp rebound .....there has to be days like today, with the world crisis it's inevitable but to sell everything on a red day : perhaps not...let's see if the red carries on tomorrow if so I shall have to see....

Hopefully the start of a bigger pullback, long overdue, and it's the speculative stocks that will feel it.

Since the start of August, RDSB has outperformed RPT. Interesting. ;-))

From Ft today:
"A lot of people are asking us about this one, and I think it's still good value as it approaches 100p. We're looking at the next operational update as key here: more news on the MEX-106 flow rate from the B sands, which was steadily improving from the last update, and maybe news of when the T and D sands will be tested, but really the story will be around SV58.

We know that the B24 sand interval there is extremely promising, and if it represents a contiguous reservoir sand across the license, the flow rates should be very exciting, even before we consider the upside from the Ts and Ds. I've said it before, I'll say it again: this is a very accomplished management, operationally speaking, and they are best-placed to drive the value from what is now effectively a resource play. Wait for the details on the SV61 drilling too, which will prove the point: this is going to be the fastest well ever drilled to these depths in Ukraine, and when you compare the timing with MEX 106 and SV58, you'll see that the management team is driving relentless operational improvement. BUY RPT in advance of this update."

more chat room crap i take it ..... please make it clear in your posts, otherwise saeveral/many will assume it's been cc'd from the pink paper - no, not the racing post

Reprimand noted! Post #351 please read 'FT chat' as title. (to say that the FT guys talk crap is possibly a bit harsh. Their contributions are graded to guide the readers from 'fact' to 'rumour'.)

All these people do is write an opinion. They're no better at this than other individuals. "DYOR" is the best "tip". ;-)))

This one has kinda fell off the BBs of late. Everyone lost interest. I've no position at present.

Try the missionary seeing as it's xmas..;-))

doggy would be better ..... then you can get shafted in a number of ways

Thanks for the tips guys!! ROFLMAO!

She's at that 80p level again and just needs to decide which way. 50/50, I guess, to either revisit 120p+ or 50p?

As Another Production Target Is Missed, Regal Petroleum Trials A Jet Perforation Technique To Solve Its Problems In Ukraine


Regal Petroleum has missed another year-end production goal as it struggles to deliver production from its tight gas fields in the Ukraine. The company had hoped that the new generation wells it is now drilling on the MEX-GOL and SV fields would lift group production to 7,500 barrels of oil equivalent per day but instead production is running at 2,072 boepd as the AIM company battles difficult downhole conditions.

The good news is the group seems to have found a solution to its completion and production problems, a solution that could lead to significant production growth in 2010. These highly pressured deep gas/condensate fields were never going to be easy to drill the state oil company used to take more than a year to drill these fields using its antiquated rigs, a timeline that Regal has more than halved using two newbuild Saipem 2,000 HP top drive rigs. The new rigs also allow the company to use a different casing design, enabling it to drill more quickly, with lower mud weights, thereby reducing the risk of the kind of formation damage that has hampered production from some of the old wells on these tight gas fields.

Even with all this state-of-the-art kit, the first two new generation wells, drilled to a depth of more than 6,000 metres, have failed to live up to expectations. The first well, MEX-106, was put into production in September 2009 but shortly afterwards suffered a blockage due to a mechanical obstruction at a depth of 5,200 metres. This meant the company could only produce from the shallower B sands at a rate of 517 boepd. A field operation using coiled tubing has recovered eight metres of the fish, with three metres still lodged downhole. The remaining section should be removed next month and then the company will be able to perforate the deeper T and D sands, ready for production testing.

The problems in the second well, SV-58, were more profound. A production test on the B sand intervals, undertaken in November, behaved in what the company called a somewhat unusual manner. A very high condensate-to-gas ratio from one of the sand layers caused the well to load up quickly with condensate, making it difficult for the well to deliver sustained commercial flow rates. There were also connectivity issues. This could have been disastrous for the company, given that it had staked its reputation on its ability to unlock the potential of the MEX-GOL and SV fields and its dubious past of hyping a project that later proved to be a dud (its ill-fated Greek venture, which led to the previous management being censured and the company receiving the largest fine in AIMs history).

But it seems Regals technical team have cracked the production problem. They have deployed a jet perforation technique, which provides deeper penetration into the formation and eliminates the formation damage generated by conventional perforating techniques. This led to a sustained and stable production flow of 395 boepd, a significant about 560 per cent increase - improvement on inflow rates. Whats more, this comes from just four metres of the target reservoir, which is less than 10 per cent of the total target reservoir. Next month, the remaining 75 metres of target reservoir will be perforated in this way, which should move the SV-58 well towards pre-drill expectations.

Importantly, the jet perforation trial has been so successful that it would seem sensible to deploy it on other wells on the field to see if they too would benefit. It seems there may be a systemic issue with the perforation techniques previously employed across the field, which would help explain its past under-performance.

Chief executive David Greer praised the breakthrough. "We take pride that this alternative perforating approach, conceived and executed in a very short timeframe in extreme weather conditions by Regal's small but professional team, has delivered a breakthrough solution to SV-58's reservoir connectivity challenge, said Greer. We now intend to build on our success in the trial by delivering access to the other target reservoirs in SV-58. During the drilling of this well, strong gas influxes were encountered, so we are optimistic that production from SV-58 can meet our pre-drill estimations in due course.

The company is now drilling two more new-generation wells. The third, SV-61, was this week at a depth of 5,960 metres near the top of the T-sand objective, while the fourth and fastest yet, SV-66, is already at a depth of 4,548 metres. An updated CPR report will be issued once the company has completed its perforation and testing programmes on all four wells. Regal has a 2P 169 million boe reserve base, a tally that was believed to be conservative. Success with the jet perforation technique will hopefully enable the company to demonstrate the potential of these wells and deliver the reserves uplift investors have been hoping for: there has been talk of a possible 350 million boe resource which could support production of 90,000 boepd at peak.