Regal Petroleum Plc with assets in Ukraine in Q2 2018 increased average daily production of gas, condensate and LPG at the Mekhediviska-Golotvshinska (MEX-GOL), Svyrydivske (SV) and Vasyschevskoye (VAS) gas and condensate fields by 58.6% or 1,045 boepd, to 2,829 boepd.
The company reported on the website of the London Stock Exchange (LSE) on Wednesday, average daily production of gas, condensate and LPG from the MEX-GOL and SV fields for the period from 1 April 2018 to 30 June 2018 was 281,599 m3/d of gas, 55.4 m3/d of condensate and 27.5 m3/d of LPG (2,220 boepd in aggregate).
Average daily production of gas and condensate from the VAS field for the period from April 1, 2018 to 30 June 2018 was 86,728 m3/d of gas and 6.2 m3/d of condensate (609 boepd in aggregate).
At the VAS field, the VAS-10 well has reached a depth of 3,380 metres, where drilling has been concluded. Subject to successful testing, it is intended to hook the well up for production testing by the end of the third quarter of 2018.
In addition, the company said that At the MEX-GOL and SV fields, workover operations are underway on the SV-12 well. This well is a suspended well owned by NJSC Ukrnafta. The company has entered into an agreement with NJSC Ukrnafta under which the company has agreed to workover the well, and if successful, gas and condensate produced from the well will be sold under an equal net profit sharing arrangement between the company and NJSC Ukrnafta.
At 30 June 2018, the company’s cash resources were approximately $40 million, held as $15.9 million equivalent in Ukrainian hryvnia.
Regal Petroleum Plc with assets in Ukraine in 2017 saw a net profit of $2.29 million, while in 2016 its net loss was $1.26 million. According to a report by Regal posted on the website of the London Stock Exchange, its revenue in the past year increased by 36.6%, to $35.05 million.
Of this revenue, gas accounted for $24.94 million (a year earlier $16.53 million), condensate for $7.96 million ($5.7 million), and LPG for $2.16 million ($3.43 million).
Taking into account exchange rate differences, Regal’s total profit for 2017 was $1.04 million against the cumulative loss of $7.26 million for 2016.
The company said its operating cash flow in 2017 compared to 2016 grew by 80%, to $18 million, and the average gas price rose from $213 per 1,000 cubic meters to $241 per 1,000 cubic meters, condensate from $51 per barrel to $67 per barrel, LPG from $43 per barrel to $56 per barrel.
Regal notes at the end of 2017 the average daily production of hydrocarbons stood at 2,800 barrels of oil equivalent per day (boepd), which is about 65% more than at the end of 2016.
At the same time, the company’s capital investments last year fell to $4 million from $13.9 million a year earlier.