Regal Energy Ltd.
TSX VENTURE : REG

Regal Energy Ltd.

December 08, 2006 16:40 ET

Regal Energy Announces New Farm-In Agreements and Updates Exploratory Drilling Activities

CALGARY, ALBERTA--(CCNMatthews - Dec. 8, 2006) -

NOT FOR DISTRIBUTION IN THE UNITED STATES OF AMERICA

Regal Energy Ltd. (TSX VENTURE:REG) ("Regal" or the "Company") is pleased to announce that it has agreed to participate in the drilling of two new exploratory prospects in Alberta by way of farm-in. Regal also announces an update of its drilling activities at Garrington and Eight Mile.

Hanna, Alberta

Regal has agreed to participate in a natural gas prospect located at Hanna in east central Alberta by way of farm-in. The Company entered into an area of mutual interest covering three separate land blocks including the farmor's interests in 13 separate sections of land. Regal committed to drill and complete (or abandon) one well by the end of 2006 by paying 50% of the costs to earn 42.5% of the farmor's interest subject to a 10% overriding royalty before payout, and 24% of the farmor's interest after payout in two sections. The well is expected to commence drilling this week and will test Glauconitic sands at an approximate depth of 1,090 metres. Following this earning well, the Company has ongoing rolling options to drill further wells to earn additional lands under its farm-in agreement.

Pica, Alberta

Regal has agreed to participate in a natural gas prospect in the Pica area of northwest Alberta by way of farm-in. The Company entered into an area of mutual interest covering 7.25 sections of land. Regal committed to drill and complete (or abandon) one well by the end of 2006 by paying 31.25% of the costs to earn a 22.86% working interest subject to a 15% overriding royalty before payout, and a 18.79% working interest after payout in two sections. The well is expected to spud this week and will test a seismically defined Kiskatinaw gas prospect at an approximate depth of 1,500 metres. Following this earning well, the Company has ongoing rolling options to drill further wells to earn additional lands under its farm-in agreement.

Garrington, Alberta

Regal recently drilled and cased two new Edmonton natural gas wells at Garrington and is presently re-entering a third well to be completed as an Edmonton gas well.

Eight Mile, British Columbia

The first well drilled on this prospect is currently being completed. Drilling of the second well commenced this week and will target natural gas in the Triassic Doig formation as the primary zone at an approximate depth of 2,000 metres, with secondary targets in the Charlie Lake and Halfway zones.

ADVISORY - Certain information regarding Regal set forth in this 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: 32,292,512

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