Ukraine Update

RNS Number : 1010K

Regal Petroleum PLC

08 July 2011

 



 8 July 2011

Regal Petroleum plc

("Regal" or the "Company")

UKRAINE UPDATE

Regal, the AIM-listed oil and gas exploration and production group (symbol: RPT), provides an update on its Ukrainian operations.

As previously announced, 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 Mekhediviska Golotvshinska ("MEX-GOL") and Svyrydivske ("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 (the "MEP").  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 MEP in the action.  On 18 October 2010, the Company filed an appeal of this ruling and on 1 December 2010, the Administrative Court of Appeal in Kiev ruled in favour of the MEP.

The Company's MEX-GOL and SV fields have been shut-in since 17 November 2010.

On 7 July 2011, the Company filed new proceedings in the District Administrative Court of Kiev against the MEP and the State Geological Service of Ukraine in respect of the Ministry Order based on new circumstances. At the same time the Company made an interim application in the new proceedings seeking a suspension of the Ministry Order, and the Court has today made a ruling on such interim application to grant a suspension of the Ministry Order. This ruling allows the Company to restart production at its MEX-GOL and SV fields. The suspension of the Ministry Order is a temporary ruling and is not a final settlement of the dispute between the Company and the MEP.  A substantive decision of the Court in the new proceedings is expected in due course.

The Company now intends to commence the technical operations necessary to resume production from the MEX-GOL and SV fields.

  
A further update will be provided in due course.

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

 

END

 

 

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