Regal Petroleum To Restart Oil Extraction In Ukraine?

According to the company’s press release, the validity of its 20-year oil extraction license was recently affirmed by the Supreme Court of Ukraine. Meaning the company can restart production at the Mikhedivske/Golotvischinske (MEX-GOL) and Svyrydivske (SV) fields, which together account for almost 90% of the company’s Proved & Probable oil and gas reserves. Yesterday Regal announced that, in the light of positive outcome to the Ukrainian license litigation, the company’s Board has “reviewed its position” regarding selling out. The company is going to provide an update in relation to the development of Ukrainian assets in the due course. Vladimir Nesterenko: This is definitely positive news for Regal and the market has already reacted by a 2% increase of Regal’s share prices since the day of the announcement. Since the beginning of this week the price grew by a remarkable 22%. The company shares are listed on LSE, further to its ₤10 mln placement on AIM in September 2002. We believe that Regal’s shareholders are likely to put their talks regarding a possible sellout on hold and opt for capitalizing on recommenced production.