Regal Petroleum fears the current situation in Ukraine will have a negative affect on business.
Ongoing geopolitical events have resulted in significant volatility in the Ukrainian Hryvnia exchange rates, uncertainty in the gas sales price and unexpected changes to the subsoil tax regime in Ukraine.
The company said that although its operational activities are running as normal, it has been unable to produce and operate routinely at the MEX-GOL and SV fields and the hydraulic fracturing of the MEX-120 and MEX-150 wells has been deferred.
The Ukrainian Government imposed a significant increase in the subsoil taxes payable by oil and gas companies operating in Ukraine in August last year.
Although the increase was a temporary emergency fiscal measure, it has now been extended into 2015.
Regal has said it will continue to monitor the situation and review its commitments to future capital investment on Ukranian fields.
Preparations are being made for the drilling of the MEX-109 well, as well as further improvements to the Company’s gas processing facilities and pipelines and remedial work on existing wells.
The average gas, condensate and LPG production from the fields at the end of 2014 was 152,744 m3/d of gas, 52 m3/d of condensate and 21 m3/d of LPG (1,370 boepd in aggregate).