Regal Energy Ltd.

Regal Energy Ltd.

March 19, 2007 09:00 ET

Regal Energy Announces Gas Discovery at Eight Mile, BC

CALGARY, ALBERTA--(CCNMatthews - March 19, 2007) -

Not for distribution in the United States of America

Regal Energy Ltd. ("Regal" or the "Corporation")(TSX VENTURE:REG) is pleased to announce a new natural gas discovery at Eight Mile, British Columbia.

Regal has participated in the completion of two recently drilled exploration wells in the Eight Mile area, located south of Fort St. John, in northeast British Columbia. The second commitment well located at 7-8-81-17 W6M was drilled in late 2006 as an exploration well targeting Triassic Age formations, including the Halfway and Doig, and reached a total depth of 1,988 metres. The 7-8 well was logged and cased and has remained standing until earlier this month when it was completed for gas production from the Doig zone. The logs indicated approximately 9 metres of potential porosity with average porosities of 9.5% in the one interval tested. The completed interval was flow tested over a 72 hour period from March 14 through 17, 2007. After fracture stimulation, the final test rate was 3.5 MMcf/d at a flowing pressure of 1,115 psi. Regal holds a 40 percent working interest in the well until payout and a 24 percent interest after payout.

In the absence of historical production information, it is difficult to estimate the actual size of the new gas pool or how the 7-8 well will actually perform when placed on production. Regal, and its partners, are proceeding with plans to drill additional wells to the south of the 7-8 well with a view towards delineating the size of the pool. The location of the 7-8 well was originally selected because it was projected at the highest and the most northerly location on the defining seismic anomaly. The first follow-up location is being planned in section 5 of the same township, with a second follow-up location being discussed in or near section 32 of Township 81. Further work is anticipated to be conducted on lands offsetting these exploratory wells, including 3D seismic and exploratory/development drilling.

Only upon receipt of the results of further delineation wells will Regal, and its partners, be in a position to announce full field development for Eight Mile. However, the operator of the property, Terra Energy Corp., has commenced scouting of a pipeline right-of-way with a view towards linking the Eight Mile area to their planned central compression and dehydration facility to the north of Eight Mile. This would involve the construction of approximately five miles of pipeline, and would be subject to regulatory approvals and to the successful completion of a pipeline crossing of the Peace River.

The first commitment well at 3-36-80-18 W6M was also completed in the Doig zone and tested formation water and is being reviewed for completion in an alternate zone. The 3-36 well is located on a separate geologic feature from the 7-8 discovery well.

Regal has now earned interests in four sections of land as a result of the completion of the two wells. Regal has an option on an additional 17 contiguous sections, within the area of mutual interest, and expects to drill a series of option wells to continue earning lands.


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.

Issued and Outstanding Common Shares: 37,287,590

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

Contact Information

  • Regal Energy Ltd.
    Wayne R. Wilson
    Vice President Finance and Chief Financial Officer
    (403) 509-2584
    Regal Energy Ltd.
    Douglas O. McNichol
    President and Chief Executive Officer
    (403) 509-2581
    Regal Energy Ltd.
    Suite 1520, Life Plaza
    734 - 7th Avenue S.W.
    Calgary, Alberta T2P 3P8