/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN
TRADING SYMBOL - REG
CALGARY, Oct. 28 /CNW/ - Regal Energy Ltd. (the "Company" or "Regal")
announces that it has commenced the exploitation of it's Roncott, Saskatchewan
lands by performing a fracture treatment of the Bakken oil formation in a
previously suspended vertical well. The well has now been placed on pump and
is currently being evaluated. The Company plans to proceed with a multi stage
frac on a previously unstimulated horizontal well on the property. There has
been significant activity in the Roncott area with the drilling of new
horizontal wells into the Bakken formation, and recent land sales for acreage
immediately adjacent to Company lands. The Company holds a 50% working
interest in 7 sections of land in this prospect, and plans to actively develop
the Bakken oil potential on the acreage. In addition to the exploitation of
Roncott, Regal intends to maximize development opportunities on its' existing
lands in order to maintain a low debt to cash flow ratio in today's uncertain
financial and commodity price environments.
The Company also advises that the amalgamation between Regal and its'
wholly owned subsidiary, G2 Resources Inc., has now been completed effective
October 1, 2008. The former management of G2 Resources has assumed the
responsibility of managing the combined entity. KPMG LLP, the prior auditor of
G2 Resources Inc., has been appointed as auditor of Regal and coincidental
with this appointment, the former auditors, Deloitte & Touche LLP, have
resigned. Regal confirms that there were no reportable events during the
period in which Deloitte & Touche LLP was the auditor to the Company.
Regal's current production is estimated at 425 Boe/d, comprised of
1,865 mcf/d and 118 Bbl/d of oil and NGLs for a gas/oil production ratio of
70/30. The Company's Kaybob 13-35 well has now been returned to production at
approximately half of its' productive capability (of 500 mcf/d) and production
is expected to increase to 1,200 mcf/d when plant capacity is increased by the
plant owner. Tie-in activities at the Company's Wapiti gas project are nearly
complete where 2 wells are expected to be placed on production during
November, providing an additional 50 Boe/d.
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: G2 RESOURCES INC., Curtis A. Hartzler,
President & CEO, or Derek Batorowski, Chief Financial Officer, Telephone:
(403) 263-4310, Fax: (403) 263-4368