Regal says that the drilling of the first of its planned exploration wells, RBN-4, in the Barlad Concession in Romania, where the Company holds a 100% working interest, has been successfully completed to a total depth of 973 metres. The well has been logged and the presence of gas within three sandstone intervals totalling 11 metres of net reservoir within the prospective Sarmatian formation has been detected. Additional gas bearing siltstone intervals of approximately 14 metres have also been identified at a level known to be productive in the nearby Roman gas field.

This well will now be suspended and the Dafora F-100 drilling rig moved to the second planned exploration well, RBN-3, which is located approximately 5 kilometres to the northwest. The completion and flow testing of RBN-4 will be undertaken with a lighter, lower cost, work-over rig once this equipment has been mobilised, which is anticipated prior to the end of 2007.

The RBN-3 well is also planned to evaluate a Sarmatian formation gas prospect and is estimated to take approximately 20 days to drill at a cost of approximately US$1.1 million.

Neil Ritson, Regal’s Chief Executive Officer commented that: “Whilst it is too early to quantify the volume of gas that has been discovered and whether a commercial flow rate can be achieved, the results of the well are similar to those expected and are encouraging.”

Regal’s Chairman, Frank Scolaro, additionally commented that "This Romanian discovery further endorses Regal’s strategy to realise value from its assets. The Company’s recent discoveries in Egypt and Romania create potential for enhanced value through future production revenue and reserves. The Company is now poised to deliver growth through its varied activities in Egypt, Romania and Ukraine."

Tags: Regal Petroleum