17 Sep 2009 14:32

Regal Petroleum aims to boost gas production in Ukraine 156% in H2

KYIV. Sept 16 (Interfax) - Regal Petroleum is planning to increase daily gas and condensate production in Ukraine by 156% to more than 3,000 barrels per day in the second half of 2009 from an average of 1,170 barrels per day in the first half of the year, the UK-based company said in a report published on the London Stock Exchange.

The company's new MEX-106 and SV-58 wells, which are to be put into test operation in September and October, respectively, will provide the bulk of the growth in output, the report says.

Both wells were drilled in a record short timeframe. The SV-58 well has depth of 6,309 meters.

Regal expects the increase in production to raise its profit margins next year.

The report says Regal Petroleum had capital investment of $48.07 million in the first half of 2009, up 340% from the same period of 2008 and 30% from all of 2008. The company invested $47.6 million of that amount in its Ukrainian assets.

Regal had net losses of $7.57 million in the first half of 2009, up 43.8% from January-June 2008. Revenue grew 30.4% to $8.68 million in the period. Gas production rose 49% to 154,000 cubic meters per day, while gas condensate output increased 53% to 264 barrels per day.