RPT.L Regulatory News (RPT)

12 Dec 2006 16:06

Regal Petroleum PLC12 December 2006 For Immediate Release 12 December 2006 REGAL PETROLEUM PLC ("Regal" or "the Company") Ukrainian Licences Validated The Company is pleased to announce that in the Ukrainian licence litigation, theaction was today brought before the Supreme Court of Ukraine who dismissed allclaims brought by Chernihivnaftogasgeologia ("CNGG") against the Ministry ofEnvironmental Protection ("MEP") challenging the validity of Regal's productionlicences in the Ukraine and as a consequence affirmed the validity of Regal'sproduction licences. The Supreme Court of the Ukraine is the final appellate court in Ukraine and itsjudgments are final and cannot be further appealed. Accordingly the licencelitigation is finally concluded. CNGG brought the legal action against its own parent organisation, the MEP,claiming that the correct procedures were not followed in the awarding of twoproduction licences to Regal in July 2004. On 10 November 2005, at the initial hearing of such action, the Kiev CityCommercial Court upheld CNGG's claim. On 31 January 2006, at the appeal hearing of such action, the Kiev Court ofAppeal again upheld CNGG's claim. On 5 May 2006, at the further appeal hearing of such action, the SupremeAdministrative Court of Ukraine again upheld CNGG's claim. On 18 August 2006, the Kiev Commercial Court ordered that this action besubmitted to the Kiev Commercial Court for reconsideration of the earlier ordersmade in this action on the basis of new circumstances. On 27 September 2006, the Kiev Commercial Court ordered that the originaldecision of the Kiev City Commercial Court made on 10 November 2005 should beoverturned (and thereby invalidating the decisions of the Kiev Court of Appealmade on 31 January 2006 and the Supreme Administrative Court of Ukraine made on5 May 2006) and that Regal's production licences were issued in accordance withthe correct procedures and are valid. At a hearing held earlier today, the Supreme Court of Ukraine ordered thedismissal of all claims in the action brought by CNGG thereby cancelling theearlier decisions made on 10 November 2005, 31 January 2006 and 5 May 2006. TheCompany is advised by its legal advisers in Ukraine that there is no furtherright of appeal in this action and that accordingly this action is finallyconcluded. As a result the Company is advised by its legal advisers in Ukraine that theeffect of today's decision is that its production licences are valid accordingto their terms of grant being 20 years from July 2004. The Company will provide an update in due course with regards to thedevelopments of its Ukranian assets. For further information, please contact: Regal Tel: 020 7408 9500 Frank Scolaro, Non-Executive ChairmanNeil Ritson, Chief Executive Officer This information is provided by RNS The company news service from the London Stock Exchange