Business
Acquisition of Assets in Ukraine
Acquisition of Assets in Ukraine.
About this update from Enwell Energy Plc
[{"type":"text","content":"\n \n \n RNS Number : 4212H\n Regal Petroleum PLC\n 24 March 2020\n \n \n \n \n 24 March 2020\n \n \n \n \n Regal Petroleum plc\n \n \n (\"Regal\" or the \"Company\")\n \n \n \n \n \n Acquisition of Assets in Ukraine\n \n \n Regal Petroleum plc (AIM: RPT), the AIM-quoted oil and gas exploration and production group, is pleased to announce the acquisition of LLC Arkona Gas-Energy (\"Arkona\"), which holds the Svystunivsko-Chervonolutskyi exploration licence (the \"Licence\") in Ukraine (the \"Acquisition\").\n \n The Acquisition was completed earlier today pursuant to an acquisition agreement made between (1) the Company and (2) Igor Mychko, Oleksandr Neschchotnyy, Dmitro Volonets and Oleg Olkhovoy (the \"Sellers\") to acquire a 100% shareholding interest in Arkona (the \"Acquisition Agreement\"). The aggregate consideration for the Acquisition is up to $8,630,000, comprising: (i) a first tranche of $4,315,000 (less certain adjustments for debt liabilities) paid on completion; (ii) a second tranche of $2,157,500 payable on satisfaction of certain conditions including the favourable resolution of a third party claim against Arkona relating to the Licence, the absence of any contractual, warranty or indemnity claims, and the delivery of certain documentation by the Sellers; and (iii) a third tranche of $2,157,500 payable in 12 months from the date of payment of the second tranche, provided that if the conditions for payment of the second tranche are not satisfied, then neither the second tranche nor the third tranche shall become payable. The Acquisition Agreement contains representations, warranties and indemnities, which are customary for this type of transaction and entitle the Company to defer consideration payments and/or seek recovery of previously paid tranches of consideration in the event of a breach of the Acquisition Agreement.\n \n \n \n \n Arkona is a Ukrainian incorporated company, and its unaudited financial statements for the year ended 31 December 2019 show that its net assets as at 31 December 2019 were UAH2.6 million ($0.10 million) and losses after tax for the year ended 31 December 2019 were UAH1.6 million ($0.06 million). \n \n \n \n \n \n Arkona holds a 100% interest in the Licence, which is located in the Poltava region in north-eastern Ukraine. The Licence has...