Regal Wins Reprieve in Ukraine

Regal Petroleum plc., which finds itself in the midst of a challenge by Ukrainian authorities, said it was taking steps to resume production at Ukrainian gas fields where work was suspended last year.

Production at the Mekhediviska Golotvshinska and Svyrydivske gas and condensate fields was suspended last November over questions about Regal's compliance with certain legislation relating to gas field operations.

A ruling by a Kiev based District Administrative court last week suspended an earlier order issued by the Ministry of Environmental Protection and giving Regal permission to resume production.

"The company now intends to commence the technical operations necessary to resume production from the Mekhediviska Golotvshinska and Svyrydivske fields," the company said in a statement.

Regal added that the suspension of an order to halt work on the fields was a temporary ruling. "A substantive decision of the court in the new proceedings is expected in due course," it added.

The company said its latest estimate put the proven and probable reserves from both sites at 169 million barrels of oil equivalent.

Source: Regal Petroleum