RPT.L Regulatory News (RPT)

Not for release, publication or distribution in whole or part in, into or from any jurisdiction where to do so would constitute a violation of the relevant laws of such jurisdiction.

4 March 2011

RECOMMENDED INCREASED PARTIAL CASH OFFER FOR

REGAL PETROLEUM PLC

BY

ENERGEES MANAGEMENT LIMITED

Increased Partial Offer Closed

Background

On 10 December 2010, the boards of Regal and Energees Investments Limited (Energees Investments), the principal holding company of the Smart Holding Group, announced that they had reached agreement on the terms of a recommended cash offer to be made by Energees Management, a wholly owned subsidiary of Energees Investments, for the entire issued and to be issued share capital of Regal. On 6 February 2011, Energees Investments and Regal announced the terms of an increased, recommended partial cash offer to be made by Energees Management, for up to 224,446,485 shares of Regal (the Increased Partial Offer). The revised offer document relating to the Increased Partial Offer (the Increased Partial Offer Document) was posted on 6 February 2011. The Increased Partial Offer was declared unconditional as to acceptances on 18 February 2011 and was declared wholly unconditional on 3 March 2011.

Level of acceptances and closing of the Increased Partial Offer

As at 1.00 p.m. on the date of this announcement (the Closing Date), Energees Management had received valid acceptances from Regal Shareholders in respect of 173,128,587 Regal Shares, representing approximately 53.99 per cent. of the existing issued share capital of Regal.

Regal Shareholders should note that the Increased Partial Offer has therefore now closed and is no longer open for acceptances.

Settlement

The consideration to which any Regal Shareholder is entitled under the Increased Partial Offer will be effected by the despatch of cheques or the crediting of CREST accounts in the case of acceptances received, valid and complete in all respects, by the Closing Date, on or before 17 March 2011 (or such later date as the Panel may agree).

Regal Shareholders should note that no scaling down exercise is required and therefore that Regal Shareholders who have validly accepted the Increased Partial Offer by the Closing Date will have their acceptances met in full.

Capitalised terms used but not defined in this announcement shall have the meaning given to them in the Increased Partial Offer Document.

Enquiries

For further information please contact:

Energees Management

Alexey Pertin Telephone: +380445903026Denis Rudev

UBS Investment Bank

(financial adviser to Energees Investments and Energees Management)

Alison Harding-Jones Telephone: +44 20 7567 8000

Thomas Onions

Tulchan Communications

(PR adviser to Energees Investments and Energees Management) 

James Bradley Telephone: +44 20 7353 4200

Stephen Malthouse

This announcement is not intended to be and does not constitute, or form any part of, an offer to sell or the solicitation of an offer to subscribe for or buy any securities, nor shall there be any sale, issue or transfer of the securities referred to in this announcement in or into any jurisdiction in contravention of any applicable law.  The Increased Partial Offer is being made solely by means of the Increased Partial Offer Document, the Approval Form and, in the case of certificated shares only, the Form of Acceptance. Please carefully read the Increased Partial Offer Document in its entirety before making a decision with respect to the Increased Partial Offer.

UBS Investment Bank is acting exclusively for Energees Investments and Energees Management and no-one else in connection with the Increased Partial Offer and will not be responsible to anyone other than Energees Investments and Energees Management for providing the protections afforded to clients of UBS or for providing advice in relation to the Increased Partial Offer or any other matter referred to in this announcement.

Overseas Jurisdiction

The distribution of this announcement in jurisdictions other than the UK and the availability of the Increased Partial Offer to Shareholders who are not resident in the UK may be affected by the laws of relevant jurisdictions. Therefore any persons who are subject to the laws of any jurisdiction other than the UK or Shareholders who are not resident in the UK will need to inform themselves about, and observe, any applicable requirements. Except as required by applicable law, copies of this announcement and all documents relating to the Increased Partial Offer are not being, and may not be, mailed or otherwise forwarded, distributed or sent in, into or from any Restricted Jurisdiction.

In particular, the Increased Partial Offer is not, unless decided otherwise by Energees Management, being made in or into, and is not capable of acceptance in or from, any Restricted Jurisdiction. Persons receiving this announcement (including, without limitation, custodians, nominees or trustees) should observe these restrictions and should not send or distribute documents in or into any Restricted Jurisdiction.

This announcement has been prepared for the purpose of complying with English law and the Code and the information disclosed may not be the same as that which would have been disclosed if this announcement had been prepared in accordance with the laws of jurisdictions outside the UK.

Notice to US Holders

US Holders should note that the Increased Partial Offer relates to the shares of a UK company, is subject to UK disclosure requirements (which are different from those of the United States) and that the Increased Partial Offer Document and any other documents relating to the Increased Partial Offer have been or will be prepared in accordance with the Code and the UK disclosure requirements, format and style, all of which differ from those in the United States. Financial information included in this announcement has been prepared, unless specifically stated otherwise, in accordance with accounting standards applicable in the UK and thus may not be comparable to the financial information of United States companies or companies whose financial statements are prepared in accordance with generally accepted accounting principles in the United States. 

The Increased Partial Offer is being made in the United States pursuant to applicable US tender offer and securities laws and otherwise in accordance with the requirements of the Code. Accordingly, the Increased Partial Offer will be subject to disclosure and other procedural requirements, including with respect to withdrawal rights, offer timetable, settlement procedures and timing of payments that are different from those applicable under US domestic tender offer procedure and law.

The receipt of cash pursuant to the Increased Partial Offer by a US Holder may be a taxable transaction for United States federal income tax purposes and under applicable United States state and local, as well as foreign and other, tax laws. Each Shareholder is urged to consult his independent professional adviser immediately regarding the tax consequences of acceptance of the Increased Partial Offer.

It may be difficult for US Holders to enforce their rights and claims arising out of United States federal securities laws, since Energees Management and Regal are located in countries other than the United States, and some or all of their officers and directors may be residents of countries other than the United States. US Holders may not be able to sue a non-United States company or its officers or directors in a non-United States court for violations of United States securities laws. Further, it may be difficult to compel a non-United States company and its affiliates to subject themselves to a United States court's judgement.

To the extent permitted by applicable law, in accordance with normal UK practice and pursuant to Rule 14e-5(b) of the US Exchange Act, Energees Management or its nominees, or its brokers (acting as agents) or their respective affiliates, may from time to time make certain purchases of, or arrangements to purchase Regal Shares outside of the United States, other than pursuant to the Increased Partial Offer, until the date on which the Increased Partial Offer becomes effective, lapses or is otherwise withdrawn. These purchases may occur either in the open market at prevailing prices or in private transactions at negotiated prices. Such purchases or arrangements to purchase will comply with all applicable UK rules, including the Code, the rules of the London Stock Exchange and Rule 14e-5(b) of the US Exchange Act to the extent applicable. Any information about such purchases will be disclosed as required in the UK, will be reported to the Regulatory News Service of the London Stock Exchange and will be available on the London Stock Exchange website at http://www.londonstockexchange.com/prices-and-news/prices-news/home.htm.