During 2010, Regal held two exploration licences in Romania - Barlad (100%) and Suceava (50%).  In the Barlad block, 104.7 km of 2D seismic was acquired between November 2009 and early January 2010 and the RBNE-1 well was drilled in August 2010, to further appraise the 2007 RBN-4 discovery.  The well was drilled to a total depth of 980 metres and penetrated the two sandstone targets.  Despite encouraging gas shows during drilling, the well did not flow gas on test.

Approval was secured from the Government of Romania to extend the concession agreement by 2.5 years from 1 September 2010 until 1 March 2013.  On 29 September 2010, the Company entered into a conditional sale and purchase agreement with Chevron for the sale of the Barlad concession to Chevron for a cash consideration of $25 million (excluding VAT and before taxes).   The Company successfully concluded this sale on 14 February 2011.

The Suceava partnership, in which Regal holds a non-operated 50% interest, drilled well Climauti-1 in the Suceava Block in June 2010.  The well was a gas discovery in Sarmatian reservoirs at around 460m and it is estimated should yield approximately 2 bcf gross of recoverable gas reserves.   The well was tied into the Bilca gas plant and came on stream on 4 March 2011 with a daily production rate of 30,000 m³/day.