Regal Petroleum plc, the independent oil & gas exploration and production company, has conditionally placed (the "Placing") new ordinary shares of 5p each in the capital of the Company (the "Placing Shares") in order to raise approximately £84 million (before expenses). The Company also announces the appointment, with immediate effect, of Strand Partners Limited as its new Nominated Adviser (“Nomad”).
Highlights
• Subject to shareholder approval, Regal will issue 56,440,000 Placing Shares at a price of £1.50 (the "Placing Price"), raising (after deduction of expenses) approximately £80 million.
• The Placing Shares represent 39.5% of the existing issued share capital of the Company. On admission of the Placing Shares to trading on AIM, there will be 199,468,824 ordinary shares of 5p each ("Ordinary Shares") in issue, valuing the issued share capital of Regal at £299.2m at the Placing Price.
• The net proceeds of the Placing will be used, primarily, to fund the exploitation and development of the Group’s Ukrainian assets and provide additional working capital to the Company.
• The Placing Shares have been conditionally placed with institutional investors. Admission and dealings in the Placing Shares on AIM are expected to commence on 22 February 2008, subject to shareholder approval at a general meeting of the Company to take place on 19 February 2008.
• Regal has been notified by the London Stock Exchange, that following an investigation it intends to refer a case regarding alleged breaches by Regal of the AIM Rules to the AIM Disciplinary Committee.
• The Company is pleased to announce the appointment of Strand Partners Limited ("Strand Partners") as its new Nomad. Mirabaud Securities Limited ("Mirabaud") will continue in its capacity as the Company's broker.
• A circular, convening a general meeting for 19 February 2008 to seek shareholder approval for the Placing, will be posted to Shareholders as soon as possible.
David J Greer OBE, Regal’s Chairman and Chief Executive Officer, commented:
"I am delighted with the response of investors to our proposed placing. To have received commitments considerably in excess of our requirements in current market conditions is a testament to the quality of our asset base and the strategy in place to exploit it. I look forward to reporting back to shareholders on our progress in the coming months."
"I would like to welcome Strand Partners as our new Nomad and I would like to thank both Strand Partners and Mirabaud for their support during the successful placing."
