Regal cuts loss, to go it alone in Ukraine

10:48, 24 June 2008
Ukraine
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Regal said in a statement on Tuesday

Regal Petroleum cut its losses in 2007 compared with 2006 and said it plans to develop its Ukrainian gas fields alone rather than with a partner, according to Reuters.

Regal said in a statement on Tuesday that it had a loss of $22.0 million in 2007, because its main fields were still in development rather than producing.

In 2006, the company recorded a loss of $115.3 million after it paid an intermediary a fee for helping to secure a Ukrainian court decision affirming its ownership of gas fields there. Regal had planned to sell part of its gas assets in Ukraine to Royal Dutch Shell Plc last year but decided instead to plough ahead alone.

"While there has been notable interest in partnering with us in the development of our Ukrainian asset, it remains my belief that it is in shareholders` best interests that our significant asset potential is developed by our own team," Chief Executive Officer David Greer said.

Regal has had a troubled few years with constant changes in top management, a regulatory probe, legal challenges to its Ukrainian licences and a collapse in shares after a claimed big find turned out to be a dry hole.

However in November David Greer, a former senior manager with Shell, was appointed Chief Executive and outlined a plan to develop the Ukrainian fields, which has been met with favour among analysts and investors.

Regal`s share price has doubled in the past three months on the back of positive research notes from Goldman Sachs and Merrill Lynch, and closed at 284-1/4 pence on Monday.

Reuters

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