Regal Petroleum increases production in November

Regal Petroleum (RPT LN) reported average gas and gas condensate production of 1,751 boepd in November and 1,632 boepd in October. November’s output was 17% above that of August, the first full calendar month of operations after an eight month suspension (November 17, 2010 to July 22, 2011), but still 10% below the pre-suspension monthly average in 2010. In late September, the company said there was still no certainty the wells would fully recover to past performance levels. Vitaliy Vavryshchuk: The growing production volumes and a surge in local gas prices in 4Q11 should bring Regal’s 2H11 operating profit and operating cash flows into the black, but both will remain negative for the full year due to extremely poor 1H results.

Regal Petroleum pre- and post-suspension production

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                                    Gas, tcm/d     Condensate, cm/d     Total, boepd,

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November 2011                   229                     51                      1,751         

October 2011                      212                      49                     1,632

August 2011                        199                      42                    1,502    

2010 (to Nov. 17)*               257                      54                    1,942 

2009                                   164                       43                   1,232           

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 *Note: Production was suspended on November 17, 2010 due to a license dispute.

Source: Company data