20th Jun 2005 10:02
Regal Petroleum PLC20 June 2005 For Immediate Release 20 June 2005 REGAL PETROLEUM PLC ("the Company") STATEMENT RE CONTRACT The Board of Directors ("Board") of Regal Petroleum plc ("Regal" or the"Company") announces that, on Friday 17 June 2005, the Company was notified bysolicitors acting for Peak Resources Limited of Hong Kong ("Peak Resources") ofthe existence of a call option agreement dated 4 May 2005 (the "Agreement")purported to be made between the Company and Peak Resources. It appears that this Agreement was signed on behalf of the Company by VasileFrank Timis who was, at that time, a Director of the Company. Mr Timis ceasedto be a Director of the Company on 7 June 2005. The remainder of the Board was not previously aware of the existence of theAgreement and had not authorised or approved the entering into of the Agreementwith Peak Resources. Pursuant to the terms of this Agreement, Peak Resources appears to have beengranted a call option to acquire the entire issued share capital of RegalPetroleum (Jersey) Limited ("Regal Jersey") on or before 31 August 2005. RegalJersey, is a wholly-owned subsidiary of the Company and has the benefit of thegroup's production licences in Ukraine. The Agreement states that the aggregateprice that would be payable by Peak Resources to Regal in respect of the sharecapital of Regal Jersey is calculated as being US$1.50 per assessed barrel ofoil equivalent for proven (P1), probable (P2) and possible (P3) certifiedreserves. The Board is currently investigating the circumstances surrounding the Agreementand is seeking legal and other advice in respect of the Company's position. The Company will make a further announcement as soon as possible. For further information, please contact: Regal Tel: 020 7408 9500Roger Phillips, Finance Director Buchanan Communications Tel: 020 7466 5000Bobby Morse This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
RPT.L