• Regal Petroleum intends to acquire new assets in Odessa region

    Regal Petroleum intends to acquire new assets in Odessa region

    Regal Petroleum intends to acquire new assets in Odessa region
    British company Regal Petroleum, a part of Smart Energy, has entered into a Memorandum of Understanding for the acquisition of PJSC Science and Production Concern Ukrnaftinvest (“UNI”), which holds the Belolisky and Alibeysk-Trapivska production licenses in Odessa region.

    The Memorandum is made between Regal Petroleum and Ms Lidiia Chernysh and Bolaso Investments Limited, who each own 50% of the issued share capital of UNI. Mr Leonid Kozachenko is the ultimate beneficial owner of Bolaso Investments Limited.

    Memorandum is non-binding (save in respect of certain provisions), but sets out proposals for Regal Petroleum to acquire 100% of the issued share capital of UNI for a total consideration of up to 40 million USD, subject to satisfaction of certain conditions.

    UNI is a Ukrainian incorporated company. According to its audited financial statements for the year ended 31 December 2018 its net assets as at 31 December 2018 were UAH 178.9 million and losses after tax for the year ended 31 December 2018 were UAH 0.7 million. As of 30 June 2019 net assets were UAH 179 million and net profits after tax of UAH 0.2 million.

    Special licenses for subsurface use, which UNI holds, were granted in August 2004 with a duration of 20 years. The licenses are perspective for oil and natural gas exploration. They have been the subject of exploration since 1980-s, with 24 wells having been drilled.

    “We have undertaken a detailed review of the available data on new assets. It has been estimated that there is geological initial oil reserves of approximately 675 MMboe. We need to agree a work program to develop the Licenses, which will include the initial drilling of wells and additional geological and exploratory works”, - noted Sergii Glazunov, CEO of Smart Energy Group. 


    Reference:

    Regal Petroleum plc is a British AIM-quoted public company, operating in Ukraine through the Representative Office of Regal Petroleum Corporation Limited in Poltava region and LLC Prom-Energo Product in Kharkiv region. The companies own special license for production of hydrocarbons and are part of Smart Energy Group.

    Whereas, Smart Energy Group is a part of Smart-Holding, in charge of implementing exploration projects and commercial development of the hydrocarbon deposits.

    In addition to assets of Regal Petroleum, Oil & Gas business block of Smart Energy is represented by gas producing Ukrgazvydobutok (Kharkiv region).

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