RPT.L Regulatory News (RPT)

26 Sep 2005 07:03

Regal Petroleum PLC26 September 2005 Immediate Release 26 September 2005 ("Regal" or "the Company") Ukranian Update Responding to the volatility in Regal's share price over the last few tradingdays, the Board of Regal ("the Board") would like to inform shareholders of thefollowing with regards to its Ukrainian assets: • The Company does not and never has regarded a complete 'sell out' of its 100% assets in the Ukraine to be the right course for the Company. The Board remains keen to pursue its original and preferred course of carrying out the full field development and production of its Ukraine assets for the benefit of the shareholders, the Government and the people of Ukraine. • Although channels of communication with Peak Resources Ltd of Hong Kong could still be described as "open", the Board believes these negotiations, which were foisted upon the Company after the discovery of an unknown apparent "option", would not be in the best interests of shareholders. • Whilst it is public knowledge that there is an on-going appeal process in Ukraine the Board would like to clarify that this legal process is not connected in any way to the Company's licence rights in Ukraine, which are not in question. • The original case was initiated by the Company surrounding the distribution of the rights to property (wells, pipeline and pilot production plant) which were developed in the Joint Venture (JV) between the Company and Chernihivnaftogasgeology (CNGG) up to the date when that JV was dissolved in June 2004. • At the Company's request, a value to be associated with those property rights was determined by the Court and its appointed auditor. The Company paid the appropriate sum into Court in August 2005. CNGG is currently appealing that valuation. • Prior to the dissolution of the JV, the JV operated an 'Exploration & Pilot Production Licence' from the Government. That licence was subsequently replaced by the current 'Development & Production Licence', which was awarded 100% to Regal. Commenting on the Company's commitment to its Ukrainian business, Dr RexGaisford, Chief Executive of Regal, stated: "Ukraine remains an exciting country in which Regal intends to develop a longterm presence. As the new political landscape becomes established, the Companywill seek to build a strong relationship with the Ukraine Government based onmutual trust and transparency. The Company's present established position givesit a great opportunity to seek additional licences and joint ventures in Ukraineand if this endeavour is successful, it will reinforce the Company's intentionto have a growing long-term presence there. On conclusion of the Court appealthe Board will make a further announcement." For further information please contact: Dr. Rex GaisfordRegal Tel: 020 7408 9500 Bobby Morse/Ben Willey Tel: 020 7466 5000Buchanan Communications This information is provided by RNS The company news service from the London Stock Exchange