UK oil explorer Regal Petroleum has backed an improved takeover bid from Energees Investments, which came on the back of a rival bid from a Ukrainian billionaire.
The offer from Energees values its proposed 70 per cent stake in Ukraine-focused Regal at around £85 million.
Energees is the main holding company of Ukraine's Smart Holding Group.
The revised offer comes following a rival proposal from Cyprus-based Heamoor and oil explorer Geo-Alliance. Both Heamoor and Geo-Alliance are controlled by the Ukrainian billionaire Victor Pinchuk.
Regal confirmed its board has now ended the talks with Pinchuk's companies and is backing the improved Energees offer.
Regal was valued at £600 million around three years ago; but since the company began facing regulatory and technical difficulties in Ukraine, a deal with a Ukrainian company to help it overcome any problems has been on the cards.
Regal's assets currently lie in Ukraine, Romania and Egypt. The company’s primary assets are two large gas and condensate fields in Ukraine—the Mekhediviska-Golotvschinska field and the Svyrydivske field, located in the Dneipner-Donets basin in the north-east of the country.
Regal also holds interests in two exploration blocks in Romania—the Barlad and Suceava Blocks—where it has a 100 per cent and 50 per cent interest respectively.
The company also has a 25 per cent joint venture in the Gulf of Suez, Egypt, with Apache Khalda Corporation, where an exploration well tested positively for oil in September 2007.
