Regal Petroleum plc reported audited consolidated earnings results for the year ended December 31, 2012. For the period, the company’s revenue was $41,103,000 against $19,069,000 a year ago. Operating profit was $10,206,000 against loss of $7,935,000 a year ago. Profit on ordinary activities before tax was $13,119,000 against loss of $6,765,000 a year ago. Profit for the year from continuing operations was $13,041,000 against loss of $3,305,000 a year ago. Profit for the year was $11,641,000 against $6,408,000 a year ago. Basic and diluted earnings per ordinary share from continuing operations were 4.1 cents against loss of 1.0 cents a year ago. Basic and diluted earnings per ordinary share from total operations were 3.6 cents against 2.0 cents a year ago. Net cash from operating activities was $32,073,000 against net cash used in operations was $21,325,000 a year ago. Purchase of property, plant and equipment was $19,274,000 against $4,136,000 a year ago. Purchase of intangible assets was $197,000 against $255,000 a year ago.

Regal Petroleum plc announced an update on its hydrocarbon reserves and contingent resources at its 100% owned and operated Mekhediviska-Golotvshinska and Svyrydivske (SV) gas and condensate fields in Ukraine. The Company engaged independent petroleum consultants, ERC Equipoise Limited, to prepare an updated assessment of the remaining Reserves and Contingent Resources attributable to the Company's MEX-GOL and SV fields as at 31 December 2012. The Report is consistent with Regal's field development plans, which comprise the drilling of a further 27 wells, and accords with the March 2007 SPE/WPC/AAPG/SPEE Petroleum Resources Management System standard for classification and reporting. The Report was commissioned to provide an update on the Company's reserves and resources since the previous reserves estimation undertaken by Ryder Scott in 2010 and takes into account information gathered during the drilling of additional wells in the fields since then. The Gas Initially In Place (GIIP) assessment in the Report demonstrates discovered GIIP in the Visean reservoirs of 5816 Bscf but, compared with the previous assessment by Ryder Scott, there has been a material reduction in the Proved (1P) and Proved + Probable (2P) categories of remaining Reserves from the previous Ryder Scott estimates which were 40.9 MMboe and 151.3 MMboe respectively. These reductions reflect lower expected recovery factors, production since 2010 of approximately 1.6 MMboe and the transfer of a significant portion of previously booked Reserves into the Contingent Resources category, reflecting their current immaturity for commercial development. Further evaluation and development of the fields may result in future movement of these Contingent Resources into Reserves. The MEX-GOL and SV fields contain three prospective reservoir intervals: the principal reservoirs in the Carboniferous Visean, the deeper Carboniferous Tournasian (T-sands) and the underlying Devonian (D-sands). While in the Report, ERCE has estimated volumes of discovered gas totaling 1944 Bscf in the deeper Tournasian and Devonian intervals, ERCE concluded that there is insufficient information at this time to determine whether the discovered gas is recoverable or not, and hence no Reserves or Contingent Resources have been assigned to these reservoirs. Accordingly, all Reserves and Contingent Resources assessed in the Report are within the Visean reservoirs.

Regal Petroleum plc announced an update on its operational activities at its 100% owned and operated Mekhediviska-Golotvshinska and Svyrydivske gas and condensate fields in Ukraine. The company's Ukrainian gas and condensate production for the period from 1 January 2013 to 28 February 2013 averaged 224,248 m3/d of gas and 48 m3/d of condensate. The company continues to benefit from the relatively strong gas prices in Ukraine. The SV-53 well was hooked up to the gas processing facility in mid-January 2013, and since then production testing has been ongoing using a variety of choke sizes and operating modes. Although initial flow rates were encouraging, flow rates have declined over the testing period and as yet, stabilized operating performance has not been established. Testing and monitoring is continuing and it is expected that it may be some weeks before a final assessment of the well can be made. At this stage it has not been established whether the declining flow performance is due to mechanical, wellbore or reservoir issues. The well has been hooked up to a compression system and average production over the last 4 days has been 19,183 m3/d of gas and 3 m3/d of condensate. This production is from the Visean reservoirs. The MEX-105 well has been drilled to a depth of 5,228 meters, and was terminated 22 meters short of its original target depth as all targeted formations, which are B-sands, had been encountered. Open hole logging operations have been undertaken and the well is currently being cased. The SV-59 well has reached a depth of 848 meters and drilling is continuing to the well's target depth of 5,470 meters. This well is also targeting the B-sands.