Regal Petroleum Plc (LON:RPT) shares more than doubled in Friday’s early deals after it updated on its operations in Ukraine, where it said production amounted to 2,800 barrels of oil equivalent per day at the end of 2017.
As the company highlighted, it marks a 65% improvement from the 2016 exit rate of 1,700 boepd.
The company said that it has now begun work on a project to investigate a potential workover and reactivation of a production well, under a recent agreement with partially state-owned firm NJSC Ukrnafta which owns the well.
It also told investors that the Ukrainian tax authorities have now returned the vast majority of documents that were taken in searches last year, and a suspension of electronic VAT registration at one of the company’s subsidiaries has now been rectified.
Regal updated investors on the impacts of Ukraine’s new tax legislation which it described as “encouraging and supportive” to independent oil and gas producers in Ukraine.
It noted that the changes won’t have an immediate impact on operational revenues but added that a positive impact is likely in due course as the legislation takes effect.