Regal Petroleum profits rocket as production kicks up a gear

Oil and gas exploration and production group Regal Petroleum saw its shares rise on Friday as its first-half profits shot up on the back of a jump in revenue.

For the six months ended 30 June, the outfit’s gross profits increased 272% to $11.9m as revenue jumped by 99% to £24.6m after the company benefited from higher production volumes and hydrocarbon prices.

Average daily production of gas from the MEX-GOL and SV fields was up 106% at 275,772 m3/d, while production remained steady at the VAS field.

All three fields are located in the Dnieper-Donets basin in the North East of Ukraine.

The AIM traded company also enjoyed significant reversal of an impairment of its oil and gas production assets of $36.1m, bringing operating profit up to $43.7m from $1m over the same period last year.

At 30 June, cash and cash equivalents were at $40m, up from $14.2m at 31 December.

In the second half of the year the firm is planning for new wells at both fields, as well as investing in gas processing facilities, a pipeline network and other infrastructure.

Regal is also on the look-out for a new chief financial officer as current incumbent Gene Palyenka is leaving next month to “pursue another opportunity”, while non-executive director Phil Frank will be replaced by Dmitry Sazonenko.

Regal Petroleum’s shares were up 7.36% at 45.09p at 1132 BST.