Regal Petroleum (LON:RPT) has put its drilling operations on hold whilst it completes an ongoing strategic review.
The company has now completed its work-over on the SV-61 well, and the SV-69 well has been prepared for a future sidetrack to overcome technical problems.
Back in September, Regal began the review which is assessing ways to optimise production and strengthen the balance sheet by reducing costs and contractual exposures.
At SV-61, Regal plans to start tubing operations next week to enable production testing of the lower sections of the well.
At the end of September the SV-69 well reached the planned 5,420 metre total depth, the well produced gas shows in three intervals whilst drilling. Subsequently however Regal has run into technical problems there, after the bottom hole assembly became stuck. Attempts to retrieve the assembly have proved unsuccessful, due to hole stability problems and equipment failures.
The SV-69 well has been plugged back in preparation for a future sidetrack.
Regal expects to announce the outcome of its review in due course.