Osborne Clarke has shored up its relationship with Regal Petroleum by advising the embattled oil exploration group on the legal minefield created by the discovery of a secret agreement to sell the group’s Ukrainian gas assets.
Corporate partner Jonathon King is advising Regal following the revelation earlier this week that former chairman Frank Timis’ had, unbeknownst by the board, signed a deal with Peak Resources of Hong Kong to sell off its Ukrainian interests.
None of the current board of Regal, which has been rebuilt since Timis’ was ousted from Regal earlier this month, were aware of the agreement which gives Peak the option to buy Regal Petroleum of Jersey, a wholly owned subsidiary that controls all of Regal’s Ukrainian gas assets.
These were the only profitable part of Regal’s business last year.
As such the revelation of the sale agreement , which states that Peak has agreed to pay $1.50 (82p) for each barrel per equivalent in the proved, probable and possible reserves, is expected to result in a legal dispute.
Peak Resources of Hong Kong has instructed Fleet St’s Ferguson Solicitors.
The secret agreement is the just latest in a series of developments that have plagued Regal.
King, who has a long-standing relationship with the group, has been in constant contact with Regal since it was revealed last month that the group’s Greek oil prospects could be worthless. This came just weeks after Regal raised £44.8m from investors at 390p a share.