Regal Petroleum Divest Part of its Ukrainian Assets
Following a competitive partial divestment process run by Tristone Capital on the Regal's behalf in relation to the Mekhediviska-Golotvschinska and Svyrydivske gas and condensate fields in Ukraine, Regal has entered into an exclusive Memorandum of Understanding with MND Exploration and Production. Under the terms of the proposed transaction, which is for a 50% interest in the Ukrainian production assets, KKCG Oil and Gas BV, MND's holding company in The Netherlands, will invest a total US$330,000,000 in the development of the MEX-GOL and SV fields.
Audited proven and probable reserves in the MEX-GOL and SV fields are currently estimated to be 169 mmboe (RyderScott, 2005) and it is envisaged that development will require the drilling of a significant number of development wells in order to achieve projected peak production rates and recovery of these reserves.
The terms of the MOU allow the Company and MND to conduct due diligence and negotiate transaction documentation on an exclusive basis, but it must be stressed however that, save in respect of certain matters, the MOU is non-binding and conditional upon due diligence and the execution of transaction documentation. In addition, save as set out herein, the terms of the MOU remain confidential.
Regal's Chief Executive Officer, Neil Ritson, said: "The Regal assets in Ukraine have attracted considerable interest from bidders and we are delighted that the proposed deal with MND will provide an immediate acceleration of activity and sustained investment. Having considered the merits of the proposals from all bidders covering a diverse range of capabilities we strongly believe that MND offers the best opportunity to realise shareholder value in our Ukrainian assets. MND has excellent technical and operational expertise and we feel confident that working together in a jointly operated venture, Regal and MND, will create the greatest project value."
The Company would like to stress that the signing of the MOU does not imply that any transaction is certain to occur or that the proposed transaction will reach completion.
- Regal Completes and Hooks Up SV-59 Well Onshore Ukraine (Feb 06)
- Regal Reports Lower Production from Ukraine Operations (Jan 03)
- Regal Updates on Ukrainian Reserves (Apr 15)
Company: MND Exploration and Production Ltd more info
- MND Preps Romania Barchiz Well for Testing (Nov 25)
- Regal Petroleum Begins Development Work at Ukraine Fields (Oct 08)
- Regal Petroleum Divest Part of its Ukrainian Assets (Sep 14)