Regal denies $1.2 billion bid approach from Shell

Ukraine-focused oil and gas explorer Regal Petroleum denied newspaper reports that it has received a €866 million takeover approach from oil major Royal Dutch Shell Plc.

A Regal spokesman said a Daily Telegraph report, citing an unamed source, that the company had received a letter proposing a 300 pence per share bid was not true.

"We have seen no such letter," the spokesman said, citing comments he had just received from chief executive officer David Greer.

The Financial Times, citing a person familiar with Regal, also said a €866 million approach had been made. But the spokesman said while Regal staff did have regular contact with Shell staff in Ukraine, discussions had been only about operational matters such as the possibility of Shell using one of Regal's drilling rigs.

Regal has previously said it has received approaches from parties that had proposed potential deals such as acquisitions of assets or purchases of stakes in Regal assets. The spokesman said none of these was at an advanced stage.

In November Regal appointed former Shell executive Greer as chief executive officer and he immediately ditched a deal to sell to his former employer a 51 per cent stake in the Ukrainian assets.

Instead, Mr Greer raised cash by selling shares so that Regal could fund the assets' development itself.