AIM 50 constituent, Regal Petroleum, said that full development of the Mekhediviska-Golotvschinska ('Mex-Gol') and Svyrydivske ('SV') licences in Ukraine had begun with the drilling of the Mex-103 well. Mex-103 will be drilled to a target depth of 5,200 metres and it expected to complete in mid 2008. Regal added that it is applying for permits to drill five additional wells. The Mex-Gol and SV fields have a combined proven and probable reserve estimate of 169 million barrels of oil equivalent ('mmboe').
Regal presently produces gas condensate from five wells equivalent to 1,275 barrels of oil equivalent per day ('boepd').
Finally, Regal said that completion of its Memorandum of Understanding with MND Exploration and Production Ltd, whereby MND can earn a 50% interest in the Mex-Gol and SV fields by investing US$330 million was continuing.
Neil Ritson, CEO of Regal commented: "We are extremely pleased to be returning to operational drilling on our Ukrainian fields with the first well in the full development programme for this major asset. Over the next year we plan to mobilise additional drilling rigs and to move into a sustained period of development drilling."