NERC gives Regal 5-year 240 mln m3 annual gas license

Ukraine’s National Electricity Regulation Commission granted Regal Petroleum (LSE: RPT LN) a 5-year license to sell 240 mln m3 of gas annually at an unregulated tariff, Interfax reported yesterday. According to Regal’s commercial director, the company now plans to sell gas to industrial consumers, whereas before it sold exclusively to gas traders. Antonina Davydenko: According to our estimates, the new license volume is twice Regal’s annual gas output, which should allow the company to sell its entire output at market price. Regal suspended production in 2010 due to license issues, which were expected to be resolved after acquisition by Smart Holding in March 2011. However, license issues still have not been cleared. According to an undisclosed source at Smart Holding cited by Mergermarket this week, the license issues are expected to be resolved by June 10.