www.regalpetroleum.co.uk
Regal Petroleum's primary assets are two large gas and condensate fields in Ukraine - the Mekhediviska-Golotvschinska (MEX-GOL) field and the Svyrydivske (SV) field located in the prolific Dneipner-Donets basin in the north east of Ukraine. Regal is the operator of the assets and there are currently 5 production wells on the assets. Secondary to this, but still significant, are two large exploration blocks in Romania, the Barlad and Suceava Blocks, where Regal holds a 100% and 50% interest respectively.
Regal Petroleum also has a 25% non-operated joint venture in Egypt with Apache Khalda Corporation LDC, where an exploration well tested positively for oil in September 2007 and was tied in as a producing well in June 2008.
Regal Petroleum’s shares jump after court ruling in its favour
Regal Petroleum (LON:RPT) has said that a government order to suspend its activities in the Ukraine may be cancelled, which would allow it to continue its resumption of gas production at fields in the country.
Shares in the firm were up 16.2 per cent at 51 pence each by 9:16am this morning.
On Tuesday evening the firm announced that it had received a written decision – dated 18 July 2011 – from the District Administrative Court of Kiev that ruled the order, from the Ministry of Environmental Protection (MEP), was unlawfully issued.
The court also ruled the cancellation of the order.
Although this decision could be appealed during the next nine days, the ruling is a further positive development for Regal in a long-running saga that began when the MEP told the firm to suspend operations at its Mekhediviska Golotvshinska and Svyrydivske gas and condensate fields in May last year.
At the time, the MEP said it had identified certain matters requiring rectification in relation to Regal’s compliance with legislation in the Ukraine that related to the operations.
On 7 July, Regal filed its latest proceedings in the District Administrative Court against the MEP and the Ukraine’s State Geological Service, while at the same time making an interim application seeking a suspension of the MEP’s order.
A day later the court granted a suspension of the order so that Regal could restart production at the Mekhediviska Golotvshinska and Svyrydivske the fields, and first production recommenced on 22 July.
