Regal Petroleum PLC
20 June 2005
For Immediate Release 20 June 2005
REGAL PETROLEUM PLC
('the Company')
STATEMENT RE CONTRACT
The Board of Directors ('Board') of Regal Petroleum plc ('Regal' or the
'Company') announces that, on Friday 17 June 2005, the Company was notified by
solicitors acting for Peak Resources Limited of Hong Kong ('Peak Resources') of
the existence of a call option agreement dated 4 May 2005 (the 'Agreement')
purported to be made between the Company and Peak Resources.
It appears that this Agreement was signed on behalf of the Company by Vasile
Frank Timis who was, at that time, a Director of the Company. Mr Timis ceased
to be a Director of the Company on 7 June 2005.
The remainder of the Board was not previously aware of the existence of the
Agreement and had not authorised or approved the entering into of the Agreement
with Peak Resources.
Pursuant to the terms of this Agreement, Peak Resources appears to have been
granted a call option to acquire the entire issued share capital of Regal
Petroleum (Jersey) Limited ('Regal Jersey') on or before 31 August 2005. Regal
Jersey, is a wholly-owned subsidiary of the Company and has the benefit of the
group's production licences in Ukraine. The Agreement states that the aggregate
price that would be payable by Peak Resources to Regal in respect of the share
capital of Regal Jersey is calculated as being US$1.50 per assessed barrel of
oil equivalent for proven (P1), probable (P2) and possible (P3) certified
reserves.
The Board is currently investigating the circumstances surrounding the Agreement
and is seeking legal and other advice in respect of the Company's position.
The Company will make a further announcement as soon as possible.
For further information, please contact:
Regal Tel: 020 7408 9500
Roger Phillips, Finance Director
Buchanan Communications Tel: 020 7466 5000
Bobby Morse
This information is provided by RNS
The company news service from the London Stock Exchange