photo_ukraine2.jpgThe AIM-traded Regal Petroluem (AIM: RPT) yesterday announced that is in early stage talks with Russia's Lukoil and other potential buyers about acquiring Regal's gas fields in Ukraine. A similiar deal with Shell fell apart five months ago.

Regal did not name that it was Russian oil giant, but industry sources confirmed that Lukoil is ready to pay as much as $1bn to increase its reserves in Ukraine. Regal Petroleum's fields in the region include the 100% owned gas and condensate fields, Mekhediviska-Golotvschinska and Svyrydivske, in Ukraine. Regal has been dogged by controversy in recent years.

The company is under investigation by the London Stock Exchange for breaking AIM rules regarding disclosure of price sensitive information in the course of drilling at the Kallirachi oil prospect in the Aegean Sea between 2003 and 2005.

In November, the company announced it had agreed a sales agreement of £360m for the Ukrainian project in return for a 51% stake in Regal's subsidiary Regal Petroleum Jersey. The deal, however, was later terminated.

Reference

www.regalpetroleum.co.uk