Second Exploration License
03 Dezember 2003 - 8:00AM
UK Regulatory
RNS Number:7817S
Regal Petroleum PLC
03 December 2003
For Immediate Release 3 December 2003
REGAL PETROLEUM PLC
("Regal" or "the Company")
Second exclusive licence awarded for oil and gas exploration
and development in Romania
The Board of Directors are pleased to announce that, following an international
competitive bidding process, the Company has been awarded an exclusive
exploration, development and production licence for the EV-2 Barlad Block
("Barlad Block") in the North East of Romania by the National Agency for Mineral
Resources of Romania ("NAMR"). This follows the successful awarding of the 4,103
square kilometre Suceava Block, also in the North East of Romania, announced in
February 2003.
Location: The Barlad Block is one of the largest exploration and development
blocks in Romania with an area of 6,285 square kilometres and is located on the
Moldavia Platform, which contains several large commercial gas and condensate
fields. The Barlad Block is on an eastward extension of Regal's existing 4,103
square kilometre Suceava Block and is located adjacent to the Roman-Secuieni gas
field, operated by Romgaz (the Romanian national gas company), the largest
commercial gas field in Romania.
History: Between 1970 and 1980 approximately 85 exploration wells were drilled
on the Barlad block, with the majority of wells successfully flowing gas from
shallow depths of between 400 to 600 metres. In addition numerous 2D seismic
survey lines were carried out on the Barlad block between 1975 and 1985.
Geological Data: The geological setting includes two tectonic units: the
Moldavian Platform and the Barlad Depression. The area has a number of large
hydrocarbon geological features including extensional and strike-slip fault
systems, representing the results of different pre-Alpine and Alpine tectonic
events.
Several wells have shown gas to be present in the Sarmatian, Badenian and
Cretaceos reservoirs. Large producing gas fields are also located near the
western boundary of the Barlad Block including the Roman-Secuieni, Glavanesti,
Gaiceana and Huruiesti fields. The Negulesti oil field (owned by Petrom) is
situated near the southern boundary of the Barlad Block. Analysis and
interpretation of the available technical data (seismic, geological and
drilling) of the southern area of the Barlad Block indicate the geological
structures to be similar to the structures in the hydrocarbon bearing reservoirs
surrounding the Barlad licence area.
Development Strategy: It is proposed to perform seismic surveys on the Barlad
Block, in conjunction with the existing Suceava Block, starting Q1 2004 to
provide additional data. Interpretation of the data will clearly define known
structures and any potential structural characteristics and stratigraphy of the
current prospective hydrocarbon plays. Once the structures have been fully
defined and deemed appropriate, exploration and development wells will be
drilled to determine the volume and characteristics of hydrocarbons starting Q4,
2004.
Executive Chairman Frank Timis said:
"The winning of the tender for the Barlad licence area continues the development
of Regal as a high impact exploration, development and production company. Regal
now has the largest and most prospective oil and gas concession of any foreign
company in Romania, with a total licence area in excess of 10,000 square
kilometres of the geological oil and gas structures. These assets, together with
our Ukrainian and Greek operations, will provide further diversity to the Regal
portfolio and should add significant additional growth and value to our assets."
For further information, please contact:
Regal Petroleum Tel: 020 7647 6622
Frank Timis, Executive Chairman
Glenn Featherby, Finance Director
Buchanan Communications Tel: 020 7466 5000
Bobby Morse
Catherine Miles
This information is provided by RNS
The company news service from the London Stock Exchange
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