Regal Petroleum announced an update on the Resources at Vasyschevskoye gas and condensate licence in Ukraine
Regal Petroleum LLC engaged independent petroleum consultants, DeGolyer and MacNaughton, to prepare an updated assessment of the remaining Reserves and Contingent Resources attributable to the Vasyschevskoye («VAS») field, and the Prospective Resources attributed to the Vvdenska («VED») prospect, located within the VAS licence area, as of 31 December 2018 (the “Report”) as set out below. The Report accords with the March 2007 (as revised in June 2018) SPE/WPC/AAPG/SPEE Petroleum Resources Management System (“PRMS”) standard for classification and reporting.
The Report estimates the remaining Reserves as at 31 December 2018 in the VAS field as follows:
The Report estimates the Contingent Resources as at 31 December 2018 in the VAS field as follows:
The Report estimates the Prospective Resources as at 31 December 2018 in the VED prospect as follows:
The VAS licence is located approximately 17 km south-east of Kharkiv in north-eastern Ukraine and extends over an area of 33.2 km². The production licence was granted in August 2012, and has a duration of 20 years. The gas and condensate resources located within the licence area are trapped in an anticlinal structure broken into several faulted blocks, which are gently dipping to the north, stretching from the north-east to south-west along a main bounding fault. These resources are located within Carboniferous sandstones of Bashkirian, Serpukhovian and Visean age at depths of 2,900 – 3,400 metres below the surface.
The Report is consistent with the proposed field development plan for the VAS field, which comprises continued production from the existing four wells and the drilling of three additional wells to recover the 2P and 3P Reserves. The Report provides an update on the Company’s Reserves and Resources since the previous estimation undertaken by Senergy (GB) Limited (“Senergy”) as at 1 January 2016 (announced on 5 July 2016) and takes into account data and information gathered since then.
The Report shows a material increase in the Proved (1P) and Proved + Probable (2P) categories of remaining Reserves from the 2016 Senergy estimates, which were 0.66 MMboe and 1.8 MMboe respectively. These increases reflect a higher level of confidence in the understanding of the subsurface at the field as a result of the new data obtained since 2016.
Sergii Glazunov, Chief Executive Officer said: "We are very pleased with the increase in reserves and resources estimated in this new independent assessment, both in relation to the producing VAS field and the recognition of the prospectivity of the VED prospect. It supports our confidence in the potential of the licence. The Report demonstrates the positive outcomes of the latest drilling project, derived from the successful implementation of efficient drilling and operations technologies. We are continuing with further work to integrate the new 3D seismic data into our subsurface model, with the aim of developing a comprehensive understanding of the reservoirs, which will be utilised in our planned field development programme."