/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE
TRADING SYMBOL - REG
CALGARY, July 24 /CNW/ - The new board of the recently combined companies
of G2 Resources Inc. ("G2") and Regal Energy Ltd. ("Regal") is pleased to
announce an interim capital spending program of $4.3 million for the balance
of 2008. Additional capital is available from increased cash flow as a result
of the G2 acquisition, bank lines and the balance of funds recently raised in
the equity issue which accompanied the business combination of G2 and Regal.
Regal will be directing its initial expenditures principally towards the
development and exploration of two of its' primary properties which are
located at Roncott in southeastern Saskatchewan and at Eight Mile in
northeastern British Columbia.
At Roncott, Regal holds a 50% working interest in an existing Bakken oil
pool which is currently producing light sweet oil. Regal also holds a 50%
working interest in extensive land holdings up-dip from the existing wells in
this pool and expects to further exploit and expand the pool with exploratory
drilling. Based on current drilling techniques and well spacing throughout the
Bakken trends, the Company believes it may have the potential to drill more
than 20 horizontal wells on its existing lands.
At Eight Mile, Regal and partners plan further development of its recent
Doig gas discovery, which was placed on production in May, 2008. A development
well will be drilled in the third quarter of 2008 to expand on the existing
discovery. 3-D seismic has recently been acquired, and will be used to further
expand the exploration opportunities on this project with the drilling of an
exploration well in the fourth quarter of 2008. This exploration well will be
a continuation of Regal's rolling option to earn further lands on the trend.
The interim capital budget also approved the tie in for production of 2
gas wells at Wapiti and the re-routing of pipelines for 3 gas wells at
Garrington to increase production efficiency and take advantage of current
Regal has also granted stock options to acquire an aggregate of
11,175,000 common shares to certain directors, officers, employees and
consultants of the company exercisable at a price of $0.20 per share. These
options will expire on July 23, 2013.
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 Exchange does not accept responsibility for the adequacy
or accuracy of this release
For further information:
For further information: REGAL ENERGY LTD., Curtis A. Hartzler,
President, Telephone: (403) 263-4310, Fax (403) 263-4368