Regal Petrolium's Successful Placement

UK’s Regal Petroleum has successfully raised $15 mln through placement.

It has placed over 57 mln ordinary shares at 60p/share, giving it a market capitalization of $15 mln. Raised funds will be used to accelerate the development of its gas and condensate field in Ukraine's Dneiper-Donets basin and increase production. The single well started in August, two other wells are expected to start production by the end of 2002.

Another is expected online by the end of 2003. Regal has a 75/25 joint venture with state owned Chernihiv in the field. The Ukrainian oil department had officially registered it as an oil and gas producer in Ukraine. It is the first western company to achieve this status and will enable it to export gas output expected in the first half of 2003. Now Regal has the financial resources to rapidly increase production. ©

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