Regal updates on Ukrainian gas potential

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LONDON, March 6 (UPI) -- Natural gas production from Ukrainian fields averaged 1,700 barrels of oil equivalent from January to February, said Regal Petroleum.

Regal Petroleum, a company listed on the London stock exchange, said production from the Golotvshinsk and Svyrydivske gas and condensate fields in Ukraine for the first two months of the year averaged 7.9 million cubic feet per day of natural gas.

That's about 1,700 barrels of oil equivalent when considering the small amount of condensate production.

Last year, Regal estimated there were around 169 million barrels of proven and probable oil equivalent reserves at some of its operations in Ukraine.

Kiev is struggling to improve its image as a natural gas transit area following spats with Russian gas monopoly Gazprom. Ukraine hasn't been able to secure financial support to revamp its gas transit system but is reviewing gas deposits, particularly shale gas reserves, in the interim.

In January, Shell Chief Executive Officer Peter Voser signed a $10 billion contract to explore Ukrainian shale. Ukrainian Prime Minister Mykola Azarov said there may be enough natural gas in shale plays to satisfy the country's needs without imports.