Regal Energy Ltd. announces third quarter 2008 results



    
    /NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE
    U.S./

    TRADING SYMBOL - REG
    

    CALGARY, Aug. 29 /CNW/ - Regal Energy Ltd. (the "Company") announces that
it has filed its unaudited consolidated financial statement as at June 30,
2008, and management's discussion and analysis for the quarter ended June 30,
2008. These consolidated interim financial statements reflect the accounts and
operations of Regal Energy Ltd. and its wholly-owned subsidiary 1389787
Alberta Ltd. They do not reflect the accounts and operations of G2 Resources
Inc. which became a wholly-owned subsidiary on July 10, 2008. During the third
quarter of fiscal 2008, Regal continued its efforts to conclude the private
placement and the business combination with G2 Resources Inc. On July 10, 2008
Regal successfully closed the business combination and received proceeds of
$5,500,000 from the private placement. As a result of the business
combination, the Regal Credit Facility has been increased to $7,500,000.
    Regal and G2's consolidated production during the month of August is
estimated to be 465 Boe/d, comprised of 2,050 mcf/d of natural gas and
123 Bbl/d of oil and NGLs. This is approximately 18% higher than the combined
production of Regal and G2 for the period ended June 30, 2008, immediately
prior to the business combination of the two companies. The current production
of 465 Boe/d is also an increase of 41% when compared to the proforma
production for the quarter ended December 31, 2007. Approximately 360 mcf/d
(60 Boe/d) of production is currently being curtailed at Kaybob, Alberta due
to plant restrictions. Regal is continuing its activities to place additional
behind pipe gas production on stream at Windfall, Alberta with the tie-in of a
previously drilled well. At Garrington, Alberta the Company is proceeding with
pipeline construction to increase gas throughput capacity, and at Wapiti,
Alberta proceeding with the tie-in of the 2 previously drilled wells. At
Roncott, Saskatchewan where Regal holds a 50% working interest in 4400 acres
of land, production is expected to increase with the fracture stimulation of
1 horizontal and 1 vertical well in the Bakken zone early in September, 2008.
Based on the results of these fracs, Regal has the potential to drill multiple
Bakken oil wells on its existing lands. The Company is also actively working
on new drilling prospects at Eight Mile, British Columbia to expand existing
production from this area.
    A copy of the audited consolidated financial statements and management's
discussion and analysis can be viewed on Regal Energy's page at www.sedar.com.

    ADVISORY REGARDING FORWARD LOOKING STATEMENTS

    Certain information regarding Regal set forth in this news release,
including management's assessment of the Company's future plans, operations
and operational results may constitute forward-looking statements under
applicable securities law and necessarily involve risks associated with oil
and gas exploration, production, marketing, and transportation such as loss of
market, volatility of prices, currency fluctuations, imprecision of reserves
estimates, environmental risks, competition from other producers and ability
to access sufficient capital from internal and external sources. As a
consequence, actual results may differ materially from those anticipated in
the forward-looking statements.

    
    The TSX Venture has not reviewed and does not accept any responsibility
    for the adequacy or accuracy of this release.
    





For further information:

For further information: REGAL ENERGY LTD., Curtis A. Hartzler,
President & CEO, or Derek Batorowski, Chief Financial Officer, Telephone:
(403) 263-4310, Fax: (403) 263-4368

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