Regal denies bid approach from Shell

By Tom Bergin

LONDON (Reuters) - Ukraine-focussed oil and gas explorer Regal Petroleum (RPT.L) denied newspaper reports on Friday that it has received a $1.2 billion (679 million pound) takeover approach from oil Major Royal Dutch Shell (RDSa.L).

A Regal spokesman said a Daily Telegraph report, citing an unnamed 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 David Greer.

Regal shares closed at 83 pence on Thursday.

The Financial Times, citing a person familiar with Regal, also said a $1.2 billion 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 and he immediately ditched a deal to sell to his former employer a 51 percent stake in the Ukrainian assets.