Regal Petroleum Plc (AIM: RPT) shares started Friday on the front foot, rising more than 6%, after a production update revealed stronger gas volumes over the forth quarter in Ukraine.
Increasing by 15% aggregate production amounted to 4,776 barrels oil equivalent for the three months ended 31 December, compared to 4,139 boepd in the comparative months of 2018.
The company noted that the improvement was driven by the boost in volumes that followed the start-up of the MEX-119 well at the MEX-GOL field, which occurred in October.
At the same time, however, there was a negative impact from declining production rates at the VAS field where a work programme has been installing compression equipment and longer term plans envisage well work-over to access alternative reservoir intervals.
Regal noted that the trend is repeated for annual production, with aggregate group production marked at 4,263 boepd for 2019 versus 3,391 boepd for 2019.
“We are pleased with our progress and achievements made during 2019, with strong production from our fields, an excellent result from the MEX-119 well in October 2019, a solid financial performance and an upgrade to the reserve base at the VAS field announced in August 2019,” said Sergii Glazunov, Regal chief executive.
“We look forward to further progressing the development of our fields in the coming year."
Drilling is underway at both the MEX-GOL and SV fields aimed at expanding production.
The company said it ended 2019 with US$63mln – with the equivalent of US$18.4mln held in Ukrainian Hryvnia and equivalent to US$44.6mln held across US Dollars, Pounds Sterling and Euros.
It also noted the legal situation regarding the VAS licence which was ordered for suspension earlier in 2019, and, the company said it had nothing further to add other than to say legal proceedings to challenge the validity of the Order are ongoing and it remains confident that it will ultimately be successful.