Regal Petroleum PLC
12 October 2005
Immediate Release 12 October 2005
REGAL PETROLEUM PLC
('the Company')
Ukrainian Update
The Directors are pleased to announce that the Kiev Court of Appeal has ruled in
favour of Regal and dismissed the appeal brought by Chernihivnaftogasgeologia,
thus upholding the original decision of the Poltava Court with respect to the
distribution of assets within their former joint-venture.
In June 2004 the exploration/pilot production licences in which Regal had a 75
per cent. interest expired. Subsequently, Regal was awarded a 100 per cent.
interest in two 20 year production licences. Contemporaneously with the
expiration of the exploration/pilot production licences, the joint-venture
arrangement Regal had with Chernigivnaftogasgeologia also expired.
In the course of the dissolution of the joint-venture, an action was brought
before the local Poltava Court in order to distribute the assets of the
joint-venture to the partners. In August 2005 the Poltava Court ruled that the
physical assets of the joint-venture be distributed to Regal and that
Chernigivnaftogasgeologia be compensated for the value of its 25 per cent
interest in the joint-venture.
Subsequently, Chernigivnaftogasgeologia lodged an appeal with the Kiev Court of
Appeal contesting the earlier decision.
On 11 October 2005 the Kiev Court of Appeal delivered its decision to dismiss
the appeal and uphold the original decision of the Poltava Court.
Commenting on the positive decision of the Ukraine appeal, Rex Gaisford, Chief
Executive Officer said:
'We are very pleased with this decision which concludes the dissolution of the
joint-venture. It also demonstrates that the court process within Ukraine is
able to enforce internationally recognised business principles for foreign
companies. We remain committed to our business in Ukraine and to developing what
we believe are world class assets.'
For further information, please contact:
Regal Tel: 020 7408 9500
Roger Phillips, Finance Director
Buchanan Communications Tel: 020 7466 5000
Bobby Morse/Ben Willey
This information is provided by RNS
The company news service from the London Stock Exchange