After stumping up seed capital at A$1.00, backers have seen the company’s share soar to 3.17 pounds on the back of a 100m net oil pay from its Kallirachi-1 exploration well.

Original estimates during drilling were for a 200m thick reservoir and 61m pay zone. After logging, this was increased to a 300m thick reservoir with 100m of net pay.

The company said that surface fluid samples from the flow of the well, as well as log and core measurements, proved the presence of sweet (37 degreesAPI), high quality oil in multi-layered sandstone pay zones. The well is interpreted as being at the South West edge of the structure where the sands are less well developed.

No oil-water contact was encountered and the well has proved hydrocarbons down to 2555m. Accordingly, the reservoir is open on depth.

Well data analysis suggests that this well can conservatively produce up to 2,000bopd with probable and possible oil-in-place volume expected to be up to 650MMstb (240 million recoverable).

Two development / production wells are now planned for the 3rd quarter of 2004 with a view to preparing a feasibility study in the first half of 2005 once the company has achieved its production targets from the Prinos, Prinos North and Epsilon wells. Subject to the feasibility study, the company will proceed with the development of the Kallirachi field.

"The Kallirachi find has exceeded our expectations by a considerable margin. The discovery of a sweet oil reservoir of such proportions, with Regal's significant infrastructure already in place in an important EU country, underpins the considerable potential of Regal. Combined with the expected increase in production from Prinos and Prinos North and the planned development of Epsilon, Regal is on the way to becoming a significant oil producer within Europe,” said executive chairman Frank Timis.

Additionally, following Regal's acquisition of Kavala Oil S.A, independent studies of the Prinos, Prinos North and Epsilon fields have been updated and show recoverable oil reserves of 80MMstb.

Infill drilling of 4 wells is to be carried out in the unexploited newly discovered pools in the Prinos and Prinos North Fields commencing in May 2004. In addition, three more submersible pumps are to be installed this year.

The company is expecting minimum daily production of 25,000 bopd from the Kavala operations by July 2005; being 12,000 bopd from the Prinos and Prinos North fields and a further 13,000 bopd from Epsilon.