LONDON (ShareCast) - Aim-listed oil and gas group Regal Petroleum has entered into a contract with drilling contractor Saipem for the provision of 2 new drilling rigs for its gas and condensate fields Mekhediviska-Golotvschinska and Svyrydivske (“MEX-GOL” and “SV”) in the Ukraine.

The initial duration of the contract is for 5 years with an option for a further 2 years and the rigs are anticipated to be available at the end of 2008.

Regal has also signed up Region Ltd, a Ukrainian based drilling contractor, for a workover rig for use at Regal’s MEX-GOL and SV fields. This rig is to be used to undertake a planned workover programme of at least 3 wells, GOL-1, GOL-2 and MEX-102.

3D seismic acquisition over the SV field, which has been underway since early January 2008, has recently been completed, Regal added.

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