Regal Petroleum PLC (AIM: RPT) said it plans to raise approximately US$100 million via placing new ordinary shares with new and existing institutional shareholders.
The number of placing shares and the price will be agreed by Regal with Merrill Lynch at the close of the book-building process.
Regal's principal focus remains the development of its gas and condensate fields in Ukraine. In light of current economic and market conditions, it has decided to follow a phased development plan, which will continue to exploit and assess the fields, initially at a modified rate using the two rigs currently under contract, it said.
Under the phased development plan, the money from the placing and Regal’s existing cash resources, will allow it to continue to develop its assets without the need for further financing, and to reach a cash flow positive position which, in the absence of further funding, is anticipated to occur by the end of 2011.
The company continues to be engaged in discussions with potential strategic partners in relation to a number of proposals, including possible joint ventures in relation to the Ukrainian fields and/or the acquisition of shares in Regal Petroleum (Jersey) Ltd ('RPJ') or the company. These discussions are at an early stage and may or may not lead to an acceptable proposal being made or legally binding documentation being entered into.