Ukraine Update

RNS Number : 0462W

Regal Petroleum PLC

11 November 2010

 



Regal Petroleum plc

("Regal" or the "Company")

11 November 2010

UKRAINE UPDATE

Regal, the AIM-listed oil and gas exploration and production group (symbol: RPT), notes the recent media comments regarding its Ukrainian operations.

As announced on 30 September 2010 in its interim results statement, on 21 May 2010, the Company received an order, dated 30 March 2010, signed by the Minister of Environmental Protection identifying certain matters requiring rectification in relation to Regal's compliance with certain legislation in Ukraine relating to its operations at its MEX-GOL and SV gas and condensate fields, and requiring a suspension of operations whilst such matters were rectified (the "Ministry Order").   

On 2 July 2010, the Company received notification of an injunction order made by the District Administrative Court of Kiev suspending the Ministry Order pending a further hearing of the action in the District Administrative Court of Kiev.  This action, challenging the Ministry Order, was brought by OJSC Ukrzakordongeologia (the Company's sole gas customer under a long term gas offtake agreement) against the Ministry of Environmental Protection.

On 9 August 2010, the District Administrative Court of Kiev ruled that the Company should be substituted as the claimant in the action brought by OJSC Ukrzakordongeologia.  On 11 October 2010, the District Administrative Court of Kiev found in favour of the Ministry of Environmental Protection in the action.  On 18 October 2010, within the statutory time frames permitted, the Company filed an appeal of this ruling.  A hearing of this appeal is currently awaited.

As also previously announced, the Company is continuing its dialogue with the Ukrainian Government and the Ministry of Environmental Protection regarding the Ministry Order with a view to the resolution of the issues raised by the Ministry Order through the Ministry's standard legislative procedures.

A further update will be made as appropriate.

For further information, please contact:

Regal Petroleum plc                        Tel: [phone] 

Keith Henry, Chairman

Robert Wilde, Finance Director

Strand Hanson Limited                    Tel: [phone]

Simon Raggett / Rory Murphy

Citigate Dewe Rogerson                 Tel: [phone]

Martin Jackson / George Cazenove

 

END

 

 

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