London-listed Regal Petroleum (RPT.LN) is in talks with potential strategic partners to develop its gas assets in Ukraine, Chief Executive David Greer told Dow Jones Newswires Tuesday.
Speaking on the sidelines of the Ukrainian Energy Forum, he said having raised $205 milion, Regal had sufficient cash to back its drilling program into 2009.
Regal is to invest $1.5 billion in the next eight years in its gas projects in Ukraine, for which it also will have enough cash, Greer said.
However he said the company is in constant talks with interested partners, "as any other shrewd operator in the industry does."
He said the partnership will take the form of the company buying a significant stake in Regal, or forming a joint venture in Ukraine.
He said the possible partner should either have enough cash, or necessary technical skills or to have what he called "a political air-cover."
Greer declined to name any company.
Regal, which has 170 million barrels equivalent of reserves, has attracted interest because of its gas assets in Ukraine, where domestic gas prices are rising to the average European level.
Regal denied recent media reports that Royal Dutch Shell (RDSA) has proposed a $1.2 billion takeover.