Regal Petroleum acquired Arcona Gas Energy

The British company Regal Petroleum, part of the Smart Energy Group, announces the acquisition of Arcona Gas-Energy, which holds a license for Svistunkivsko-Chervonolutske field in the Poltava region.

On March 24, 2020, the acquisition of assets was completed in accordance with an agreement between Regal Petroleum and the previous owners. Under the terms of the agreement, the company acquired 100% of the shares of Arcona Gas-Energy. The first tranche at the conclusion of the contract will be $4.315 million. The company will transfer another $2,157.5 million to the former owners of Arcona Gas-Energy if certain conditions of the agreement are met. If the second payment is made, a year after it, the third tranche will take place, also in the amount of $2,157.5 million. Thus, according to the agreement signed, the total value of the asset can be up to $8.63 million. At the same time, the final cost will be determined by meeting certain conditions of the agreement. The agreement also contains explanations, obligations and guarantees that are standard for such deals, and gives the company the right to defer certain payments and/or claim compensation for losses incurred in previous tranches in case of violation of the terms of the acquisition agreement.