OREANDA-NEWS. December 13, 2010. Regal Petroleum plc, an onshore explorer for oil and natural gas in Ukraine, received a 24 pence-per-share offer from Energees Management Ltd, affiliated with Smart-Holding (Vadim Novinskiy), as the target company announced on Des 10. It stated that the offer would provide greater value and certainty to Regal shareholders.

Millennium Capital considers the news as NUETRAL for RPT. Although the stock rose 31.1% at the close of the LSE session on Dec 10 playing out the news, Millennium Capital expects that the mounting operational, legal and funding problems will further challenge the company. Particularly Regal plugged a well in Ukraine in Nov after having faced technical problems. Besides, the company has being negotiating with the Ukrainian government since June after receiving an order to suspend its operations because of failure to comply with the legislation. A court injunction overturned the order in Aug. In Millennium Capital’s view, all the difficulties the company had in Ukraine will have a negative impact on the stock in the short to mid term.