Oil explorer draws a line under the regime of its colourful Romanian founder Frank Timis by kick-starting auction of its most lucrative assets
One of the most controversial oil explorers in the City has hired corporate bankers to kick-start an auction of its most lucrative assets.
Regal Petroleum, best remembered for a share plunge after coming up dry at a well in Greece two years ago, said that it wants to examine “potential strategic options” for two gas fields in Ukraine.
Tristone Capital has been hired to run the review, with the most likely outcome a larger rival taking a stake in the projects and funding the lion’s share of their development.
Regal stressed that its announcement should not be taken as a sign that a deal is “either imminent or certain to occur”.
Regal Petroleum, best remembered for a share plunge after coming up dry at a well in Greece two years ago, said that it wants to examine “potential strategic options” for two gas fields in Ukraine.
Tristone Capital has been hired to run the review, with the most likely outcome a larger rival taking a stake in the projects and funding the lion’s share of their development.
Regal stressed that its announcement should not be taken as a sign that a deal is “either imminent or certain to occur”.
But analysts said that Neil Ritson, the chief executive, was finally drawing a line under the reign of its colourful Romanian founder and former executive chairman Frank Timis.
Mr Timis remains a major shareholder but has stepped back from the board.
One analyst told The Times: “I still wouldn’t be keen on looking at Regal as an investor but if you’re an oil company the idea of being a partner in a field is a different matter.
“And there are rumours that what they have in Ukraine is worth certainly looking at.”
Regal gained control of the Mekhediviska/Golotvschinska and Svyrydivske fields in Ukraine after winning a lengthy court case at the end of last year.
The two have proved and probable reserves of nearly 170 million barrels of oil equivalent. Earlier this year Regal said that it may look to take on joint venture partners.
Tristone is trying to carve itself a niche in the oil and gas sector and is rumoured to be lining up a number of deals among some of the 88 minnows on the Alternative Investment Market (AIM).
About half the oil and gas companies on AIM are expected to disappear under a wave of consolidation over the next 12 to 18 months.
Mr Ritson said: “As Regal seeks to develop its portfolio we are delighted to be able to work with the team at Tristone.”
Regal shares, which touched 500p in 2005, slipped 4p to close at 146p.
Mr Timis remains a major shareholder but has stepped back from the board.
One analyst told The Times: “I still wouldn’t be keen on looking at Regal as an investor but if you’re an oil company the idea of being a partner in a field is a different matter.
“And there are rumours that what they have in Ukraine is worth certainly looking at.”
Regal gained control of the Mekhediviska/Golotvschinska and Svyrydivske fields in Ukraine after winning a lengthy court case at the end of last year.
The two have proved and probable reserves of nearly 170 million barrels of oil equivalent. Earlier this year Regal said that it may look to take on joint venture partners.
Tristone is trying to carve itself a niche in the oil and gas sector and is rumoured to be lining up a number of deals among some of the 88 minnows on the Alternative Investment Market (AIM).
About half the oil and gas companies on AIM are expected to disappear under a wave of consolidation over the next 12 to 18 months.
Mr Ritson said: “As Regal seeks to develop its portfolio we are delighted to be able to work with the team at Tristone.”
Regal shares, which touched 500p in 2005, slipped 4p to close at 146p.
Source: The Times
No comments:
Post a Comment