29 September 2011
Regal Petroleum (LSE: RPT LN, N/R) posted a net loss of USD 10.2 mln in 1H11, mostly stemming from administrative expenses of USD 10.1 mln. Revenues were a meager USD 0.2 mln vs. USD 15.9 mln in 1H10 due to a suspension in production during the entire reporting period. The company restarted production on July 22, 2011 at a daily production level of 1.6 kboepd. Regal currently sells gas at 379/Mm³ in Ukraine. Antonina Davydenko: The poor financial results were expected given the halt in production. If production levels are maintained until yearend, Regal could generate around USD 18 mln in revenues in 2011. To finance drilling, Regal will require substantial capital inflows from Smart Holding, which took over control of the company in March 2011.