A well-received operational update from Ukraine led shares in oil & gas business Regal Petroleum (LSE:RPT) to shoot up 6.3pc today to a one-month high of 19.1p.
The firm said average daily production from its MEX-GOL and SV licences in the country from 1 April to 30 June was 281,599 m3/d of gas, 55.4 m3/d of condensate and 27.5 m3/d of LPG, or 2,220 boepd in aggregate. This figure is a significant jump on Q2 2017 production, which came in at 136,844 m3/d of gas, 38.0 m3/d of condensate and 20.4 m3/d of LPG, or 1,179 boepd in aggregate.
The business also reported that workover operations are underway on a well called SV-12 at the SV licence and are due to complete in the third quarter. It has entered into an agreement that will see any gas and condensate produced from SV-12 be sold under an equal net profit sharing arrangement with state-backed NJSC Ukrnafta, the well’s owner.
Regal also said that average production from its VAS licence in Ukraine came in at 86,728 m3/d of gas and 6.2 m3/d of condensate, or 609 boepd in aggregate over the second quarter – a slight increase on Q2 2017. It has now successfully drilled a well at the site and expects to complete 3D seismic by the end of September ahead of processing and interpretation in Q4 2018.
Operations aside, today’s update also saw Regal announce a healthy cash balance of $40m as at 30 June 2018, up from $20.3m as at 28 March 2018. It holds this current balance as $15.9m equivalent Ukrainian Hryvnia and $24.1m equivalent US Dollars and Sterling.
Today’s positive update continues a decent start to 2018 for Regal, which has seen its share shoot up from 6.8p at the beginning of the year.
In April, the company reported that production from its Ukranian fields came in at around 2,800boepd over 2017, up from 1,700booepd at 2016 year-end. A new well at MEX and a successful workover at SV were the primary drivers of this 65pc rise. It also reported a 2017 profit of $2.3m, up from a $1.3m loss in 2016, and revenues of $35.1m from $25.7m the year before.