7th Dec 2005 17:56
Regal Petroleum PLC07 December 2005 Immediate Release 7 December 2005 REGAL PETROLEUM PLC ("Regal" or "the Company") Ukrainian Update The Directors are pleased to announce that the Supreme Commercial Court ofUkraine has ruled in favour of Regal and dismissed the latest appeal brought byChernihivnaftogasgeologia ("CNGG"), thus upholding the earlier decisions of thePoltava Court and the Kiev Court of Appeal with respect to the distribution ofassets 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 CNGG 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 that CNGG becompensated for the value of its 25 per cent interest in the joint-venture. CNGG lodged an appeal with the Kiev Court of Appeal contesting the Poltava Courtruling, which appeal was dismissed in October 2005. CNGG then lodged a further appeal to the Supreme Commercial Court of Ukraine.The hearing of this appeal was held earlier today, when the Supreme CommercialCourt dismissed this appeal, thereby again ruling in Regal's favour. For further information, please contact: Regal Tel: 020 7408 9500Roger Phillips, Finance Director Buchanan Communications Tel: 020 7466 5000Bobby Morse Mobile: 07802 875 227 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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