Regal spuds SV-58 well in Poltava

Regal Petroleum (RPT LN) announced in a company update this morning that late yesterday it spudded the SV-58 well using the second of its American-made top drive drilling rigs from Saipem. The company said its has reached a depth of 2,600 m on well MEX-106 (target maximum depth is 6,200 m). The company said drilling of both wells is expected to take six months. Regal said it planned to maintain production at 1,500 boepd through spring, with a significant increase once the two new development wells are completed. Regal said it executed a mandate outlining indicative terms and conditions for the prospective provision of a loan facility for up to USD 100 mln by Macquarie. The company said it holds cash of USD 88 mln, sufficient to complete the two development wells and some of the lead items for the drilling of future wells.