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Regal Petroleum unable to seal final terms for $40 million deal in Ukraine

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Christian Fernsby ▼ | April 1, 2020
Regal Petroleum on Wednesday said a proposed $40 million acquisition in Ukraine has collapsed.
Regal Petroleum
The licences   Regal signed a memorandum of understanding with Lidiia Chernysh
In November last year, Regal signed a memorandum of understanding with Lidiia Chernysh and Bolaso Investments Ltd, who each own half of PJSC Science & Production Concern Ukrnaftinvest, or UNI, which holds the Belolisky and Alibeysk-Trapivska licences.

Topics: Regal Petroleum Ukraine

The MoU outlined a plan to buy the licences for up to USD40 million. This would have been USD9 million on completion, USD1 million on meeting "certain conditions", and then 25% of the net present value of the proven reserves of the licences, capped at USD30 million.

The two licences are located in the Odessa region of south-western Ukraine. They were granted in 2004 for 20 years.

However, on Wednesday Regal said the MoU has expired and has now been terminated. It was unable to reach a final agreement, and a USD500,000 deposit put down by Regal will be returned.