12th Oct 2005 09:53
Regal Petroleum PLC12 October 2005 Immediate Release 12 October 2005 REGAL PETROLEUM PLC ("the Company") Ukrainian Update The Directors are pleased to announce that the Kiev Court of Appeal has ruled infavour of Regal and dismissed the appeal brought by Chernihivnaftogasgeologia,thus upholding the original decision of the Poltava Court with respect to thedistribution of assets within their former joint-venture. In June 2004 the exploration/pilot production licences in which Regal had a 75per cent. interest expired. Subsequently, Regal was awarded a 100 per cent.interest in two 20 year production licences. Contemporaneously with theexpiration of the exploration/pilot production licences, the joint-venturearrangement Regal had with Chernigivnaftogasgeologia also expired. In the course of the dissolution of the joint-venture, an action was broughtbefore the local Poltava Court in order to distribute the assets of thejoint-venture to the partners. In August 2005 the Poltava Court ruled that thephysical assets of the joint-venture be distributed to Regal and thatChernigivnaftogasgeologia be compensated for the value of its 25 per centinterest in the joint-venture. Subsequently, Chernigivnaftogasgeologia lodged an appeal with the Kiev Court ofAppeal contesting the earlier decision. On 11 October 2005 the Kiev Court of Appeal delivered its decision to dismissthe appeal and uphold the original decision of the Poltava Court. Commenting on the positive decision of the Ukraine appeal, Rex Gaisford, ChiefExecutive Officer said: "We are very pleased with this decision which concludes the dissolution of thejoint-venture. It also demonstrates that the court process within Ukraine isable to enforce internationally recognised business principles for foreigncompanies. We remain committed to our business in Ukraine and to developing whatwe believe are world class assets." For further information, please contact: Regal Tel: 020 7408 9500Roger Phillips, Finance Director Buchanan Communications Tel: 020 7466 5000Bobby Morse/Ben Willey This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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