TIDMRPT
RNS Number : 0325B
Regal Petroleum PLC
05 January 2018
5 January 2018
Regal Petroleum plc
("Regal" or the "Company")
Ukraine Update
Regal Petroleum plc (AIM: RPT), the AIM-quoted oil and gas
exploration and production group, announces an update of its
operational activities in Ukraine, where it operates the
Mekhediviska-Golotvshinska (MEX-GOL), Svyrydivske (SV) and
Vasyschevskoye (VAS) gas and condensate fields.
Operations
The aggregate rate of production from the MEX-GOL, SV and VAS
fields at the end of 2017 was approximately 2,800 boepd. This
compares with an aggregate production rate of approximately 1,700
boepd at the end of 2016, which represents an increase of nearly
65% over the year.
The average daily production of gas, condensate and LPG from the
MEX-GOL and SV fields for the period from 1 October 2017 to 31
December 2017 was 276,089 m(3) /d of gas, 54 m(3) /d of condensate
and 30 m(3) /d of LPG (2,187 boepd in aggregate) (Q4 2016: 140,818
m(3) /d of gas, 38 m(3) /d of condensate and 19 m(3) /d of LPG
(1,196 boepd in aggregate)).
Average daily production of gas and condensate from the VAS
field for the period from 1 October 2017 to 31 December 2017 was
87,631 m(3) /d of gas and 6.4 m(3) /d of condensate (616 boepd in
aggregate) (Q4 2016: 86,801 m(3) /d of gas and 7.0 m(3) /d of
condensate (604 boepd in aggregate)).
For the year ended 31 December 2017, average daily
production:-
(i) from the MEX-GOL and SV fields was 197,961 m(3) /d of gas,
47 m(3) /d of condensate and 24 m(3) /d of LPG (1,629 boepd in
aggregate) (2016: 157,228 m(3) /d of gas, 41 m(3) /d of condensate
and 19 m(3) /d of LPG (1,321 boepd in aggregate)); and
(ii) from the VAS field was 86,242 m(3) /d of gas and 6.5 m(3)
/d of condensate (608 boepd in aggregate) (Period from 4 July 2016
to 31 December 2016: 82,624 m(3) /d of gas and 6.5 m(3) /d of
condensate (556 boepd in aggregate)).
In November 2017, the Company entered into an agreement with
NJSC Ukrnafta, the partially State-owned oil and gas producer,
relating to the SV-12 well, which is a suspended well owned by NJSC
Ukrnafta located within the Company's SV licence area. Under the
agreement, the Company agreed to investigate the re-activation of
this well, which may include a workover of the well, and, if this
action is successful, the well will be brought back into
production, with the gas and condensate produced from the well
being sold under an equal net profit sharing arrangement between
the Company and NJSC Ukrnafta. Initial work has commenced on the
well to ascertain which operations are likely to be required to
re-activate the well.
At the VAS field, mobilisation of equipment for the acquisition
of 3D seismic has commenced, and preparation for the VAS-10 well is
well underway, with spudding of this well expected in mid-February
2018.
Ukrainian Tax Authorities
Following on from the announcements made on 16 and 20 November
2017 relating to searches of the Company's premises by the
Ukrainian Tax Authorities ("Tax Authorities"), the Tax Authorities
have now returned the vast majority of the documents that were
taken away during the searches. In addition, the suspension of the
electronic VAT registration of one of the Company's subsidiaries
has been rectified and this subsidiary is now able to issue VAT
invoices through the electronic system operated in Ukraine.
New Legislation
In December 2017, the Ukrainian Government passed new
legislation for the oil and gas sector in Ukraine as follows:-
(i) for new wells drilled after 1 January 2018, the subsoil tax
rates will be reduced from 29% to 12% for gas produced from
deposits at depths above 5,000 metres and from 14% to 6% for gas
produced from deposits below 5,000 metres;
(ii) with effect from 1 January 2019 and applicable to all
wells, the subsoil tax rates for condensate will be reduced from
45% to 29% for condensate produced from deposits above
5,000 metres and from 21% to 14% for condensate produced from
deposits below 5,000 metres.
The Company considers that this new legislation is encouraging
and supportive to the independent oil and gas producers in Ukraine,
and, whilst the legislation will not have an immediate impact on
the Company's operational revenues, there is likely to be a
positive impact on the Company's operational revenues in due course
as the legislation takes effect.
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014.
For further information, please contact:
Regal Petroleum plc Tel: 020 3427
3550
Chris Hopkinson, Chairman
Sergii Glazunov, Chief Executive
Officer
Strand Hanson Limited Tel: 020 7409
3494
Rory Murphy / Richard Tulloch
Citigate Dewe Rogerson Tel: 020 7638
9571
Louise Mason-Rutherford /
Shabnam Bashir
Philip Frank, PhD Geology, Chartered Geologist, FGS, PESGB,
Director of the Company, has reviewed and approved the technical
information contained within this press release in his capacity as
a qualified person, as required under the AIM Rules.
Definitions
boepd barrels of oil equivalent
per day
LPG liquefied petroleum
gas
m(3) cubic metres per day
/d
% per cent
This information is provided by RNS
The company news service from the London Stock Exchange
END
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