UPDATE: Regal Petroleum Shares Rise On Ukraine Injunction

2nd Jul 2010 14:30

(Adds detail, share price) By Hannah Benjamin & Zechariah Hemans Of DOW JONES NEWSWIRES LONDON (Dow Jones)--Shares in oil and gas explorer Regal Petroleum PLC (RPT.LN) climbed nearly 9% Friday, after the company got approval to continue drilling and production in the Ukraine after an order halting its operations there was suspended. The firm last week announced it was in talks with the Ukrainian government after it received an order signed by the Minister of Environmental Protection questioning the legality of its operations at its Mekhediviska Golotvshinska and Svyrydivske gas fields. But in a statement Friday Regal said OJSC Ukrzakordongeologia, which buys all of its gas production from the two Ukrainian gas fields, had successfully got an injunction banning the order from the District Administrative Court of Kiev. "As a result of the court's injunction order, the company's drilling and production operations may continue, as they have done, throughout these events without any interruption of gas supplies to OJSC Ukrzakordongeologia," Regal Petroleum said in its statement. At 1320 GMT Regal Petroleum's shares were trading 2 pence, or 8.7%, higher at 28 pence, outperforming a 0.7% rise in the Dow Jones Smaller Companies index. Regal said a further hearing is due to take place at the court and it will make an announcement in due course. The order from the Ukrainian Minister was dated March 30, but the company said it only received the order May 21. -By Hannah Benjamin, Dow Jones Newswires; 44-20-7842-9298; [email protected] (END) Dow Jones Newswires July 02, 2010 09:30 ET (13:30 GMT)