RPT.L Regulatory News (RPT)

20 Feb 2006 14:48

Regal Petroleum PLC20 February 2006 Immediate Release 20 February 2006 REGAL PETROLEUM PLC ("Regal" or "the Company") Ukrainian Update The Directors are pleased to announce that the Supreme Court of Ukraine hasruled in favour of Regal and dismissed the final appeal brought byChernihivnaftogasgeologia ("CNGG") with respect to the distribution of assetswithin their former joint-venture. In June 2004 the exploration/pilot production licences in which Regal had a 75per cent. interest expired. Subsequently, Regal was awarded a 100 per cent.interest in two 20 year production licences. Contemporaneously with theexpiration of the exploration/pilot production licences, the joint-venturearrangement Regal had with CNGG also expired. In the course of the dissolution of the joint-venture, an action was broughtbefore the local Poltava Court in order to distribute the assets of thejoint-venture to the partners. In August 2005 the Poltava Court ruled that thephysical assets of the joint-venture be distributed to Regal and that CNGG becompensated for the value of its 25 per cent interest in the joint-venture. CNGG lodged an appeal with the Kiev Court of Appeal contesting the Poltava Courtruling, which appeal was dismissed in October 2005. CNGG lodged a further appeal to the Supreme Commercial Court of Ukraine whichwas also dismissed in December 2005. CNGG then lodged a further appeal to the Supreme Court of Ukraine, which is thefinal appellate court in Ukraine. The decision in this appeal was issued earliertoday, when the Supreme Court dismissed this appeal, thereby finally ruling inRegal's favour in this matter. In respect of the legal challenge brought by CNGG against the Ministry ofEnvironmental Protection with respect to the validity of Regal's productionlicences in the Ukraine, which was referred to in the Company's announcementsdated 31 January and 16 February 2006, Regal is awaiting notification of ahearing date for its further appeal to the Supreme Administrative Court ofUkraine to establish the validity of its licences. For further information, please contact: Regal Tel: 020 7408 9500Roger Phillips, Finance Director Buchanan Communications Tel: 020 7466 5000Bobby Morse This information is provided by RNS The company news service from the London Stock Exchange