Heamoor Limited and Geo Alliance to acquire London Stock Exchange listed Regal Petroleum plc (UK)

In a posting to the London Stock Exchange, Regal Petroleum Plc noted that Heamoor Limited (Cyprus) and Geo Alliance (Kyiv), confirmed willingness to acquire Regal Petroleum plc (UK), the oil and gas company with assets in Ukraine, Romania and Egypt.

Regal Petroleum’s posting was an update with regard to the interest expressed by Heamoor in its announcement of 13 December 2010. The posting refers to proposed reverse take-over of Geo-Alliance with an option for Regal shareholders to sell their Regal shares to Heamoor at a price of 25 pence per Regal share for three months following completion of the reverse take-over.

Regal would acquire the entire issued share capital of Geo-Alliance, in consideration for the issue of new ordinary shares in Regal to the shareholders of Geo-Alliance, representing not more than 70.0 per cent of Regal's fully diluted share capital, as enlarged by the acquisition. The total cost of the deal exceeds £77 million or US$122 million.

The shareholders of Regal Petroleum on December 10 announced they were considering options for selling the company. Energees Investments Ltd Company based in Cyprus has announced it is ready to acquire Regal Petroleum plc for £77 million, approximately US$121.8 million.

Regal Petroleum, which also mines hydrocarbon deposits in Romania and Egypt, ended 2009 with a loss of US$9.819 million. The company's net revenues increased by US$8.422 million or 73.55% to US$18.879 million in 2009, compared with 2008. Regal Petroleum began operation in Ukraine in 1999.

Both Heamoor and Geo-Alliance are companies incorporated in Cyprus with all their issued and outstanding shares currently held by several discretionary trusts, the beneficiaries of which are Mr. Victor Pinchuk and his family members. Heamoor is involved in various financing activities and Geo-Alliance is a leading private oil and gas producer in Ukraine, further details of which are set out below.

Heamoor has confirmed to the Board of Regal that it has deposited funds with its financial adviser which are sufficient to meet the full consideration payable under the purchasing commitment made in connection with the Acquisition or under the Geo-Alliance Pre-conditional  Cash Offer, said Regal.

Geo-Alliance's assets comprise 16 permit areas covering 16 fields with a combined area of approximately 1,090 km2, of which 15 fields are located in the Dnipro-Donets basin, Cyprus. Geo-Alliance also owns 49 kilometers of pipeline connecting its producing wells to gas treatment facilities and to the Ukrainian gas transmission network.

21 Jan 2011.