Regal Petroleum reports 2011 financials

Regal Petroleum (RPT LN) released its 2011 financials last Friday, the first report since it resumed operations in July of last year. The company’s 2011 revenues stood at USD 19.1 mln (-34% yoy), with virtually the full amount generated in 2H11. Regal’s production averaged 1,653 boepd in the last five months of 2011 and the company revealed it increased output further to 1,769 boepd in 1Q12. All of the company’s sales originated in Ukraine, while its average selling price for gas and condensate was up 57% yoy and 39% yoy, respectively. Regal’s net loss from continuing operations was USD 3.3 mln, but profit from discontinued operations of USD 9.7 mln (mainly due to the disposal of concessions in Romania and Egypt) turned the bottom line positive to USD 6.4 mln. CapEx shrank to USD 1.3 mln in 2011 from USD 86.7 mln in 2010 due to a license dispute that lingered until August 2011. Now that all Regal’s permits have been fully restored, the company has an investment program for 2012 that includes drilling two new wells (SV-53 stubbed on February 28 and MEX-105 on April 17), workovers of three existing wells and upgrading its gas treatment facility. CapEx is planned to be fully funded from its current cash balances and future revenues.

Regal Petroleum 2011 financials, IFRS, USD mln                                       
                                   2H11   1H11   2011   2010
Revenue                       18.9    0.2     19.1     29.0
Gross profit                   10.5   -1.5     8.9      15.6
Operating profit/loss      3.7     -11.7   -7.9    -17.1
Net profit/loss               5.8      0.6      6.4     -40.6
Operating cash flow       13.2   -34.5   -21.3    13.0
Cash balance (eop)        19.7    9.5     19.7     23.3

Source: Company data