On September 15, 2011, about 1230 Alaska daylight time, a Cessna U206G airplane, N1779R, sustained substantial damage when it collided with terrain, following a loss of engine power during takeoff initial climb, about 33 miles northwest of Beluga, Alaska. The airplane was operated by Regal Air, Anchorage, Alaska, as a visual flight rules (VFR) passenger flight under the provisions of 14 Code of Federal regulations Part 135, when the accident occurred. The airline transport pilot and the two passengers were not injured. Visual meteorological conditions prevailed, and company flight following procedures were in effect. The flight was bound for Anchorage. In a written statement to the National Transportation Safety Board (NTSB) investigator-in-charge (IIC) dated September 16, the pilot reported that after crossing the departure end of the lake, about 200 feet above ground level, the airplane's engine sputtered and died. He said he concentrated on landing the airplane straight ahead, as slow as possible. The airplane collided with terrain in a boggy area, sustaining substantial damage to the fuselage and right wing. During a telephone conversation with the IIC on September 17, the pilot said prior to takeoff the airplane had been in a left step turn, and that the left fuel tank had been selected for takeoff. The airplane was recovered to an aviation repair facility near Wasilla, Alaska, and on October 7, with the engine still attached to the fuselage, a new propeller installed, and a clean fuel supply provided, the engine was test run. The engine was run at varying rpm, and a magneto check was completed. No engine anomalies were found.