News

The gas supply system of Kharkiv may be disrupted due to the shutdown of one of the gas producing companies of the region Private Joint Stock Company Ukrgazvydobutok (part of Smart Energy Group). At the moment, the company is forced to put on hold its production in response to the notification from the Public Service Geology and Mineral Resources of Ukraine regarding revocation of the special license for the subsoil use.

A listed British company, Regal Petroleum plc (part of Smart Energy Group) has informed its shareholders, overseas partners and other stakeholders about searches made by Ukrainian tax authorities at its representative offices in Ukraine. The Company believes that such actions are pointless and cause harm to the general investment climate in Ukraine.

Smart Energy Group suggests creating a register of corrupt law enforcement officers that would contain information about particular executors that carry out culpable orders, fabricate evidence and perform investigative actions in violation of procedural rules to unlawfully press on business. The Group expects that this initiative will be supported by investigative journalists and companies that resist outrage of law enforcement officials.

Using the law enforcement system, the authorities continue their consistent pressure on Smart-Holding’s business. Today, representatives of the State Fiscal Service, upon the initiative of the Prosecutor General's Office of Ukraine, are making searches at the gas producing companies of Smart Energy Group, at the head office and at its top executives' homes. Investigative activities are made in Kharkov and Kiev cities, as well as in Poltava region in the framework of investigation of the alleged fictitiousness of Smart Energy and, as a consequence, of the alleged tax evasion by the companies of the group.

Today, Vadim Mokhov, the director of Ukrgazvydobutok (UGV), a volunteer well known in Kharkov and the region, has been detained. According to his lawyer, the detention was made with numerous violations of the criminal procedural provisions.

Smart Energy Group reports unjustified pressure from the State Fiscal Service (SFS) and considers this as a biased interference with the group’s business that disturbs the companies’ operations.

With effect from 20 September 2017, Mr Chris Hopkinson has joined the Board of Directors as a Non-Executive Director of the Company. Mr Hopkinson has extensive experience in the oil and gas industry, having worked in senior management roles in Khazakhstan, Africa, Russian Federation and the Middle East.

Mr. Adrian Coates has left the post of the Company's Independent Director, which he was occupying during the last 9 years. Mr. Bruce Burrows joined the Board of Directors instead.

Sergei Glazunov, who earlier was holding the position of an Independent Director of the company since February 2012, and later the position of the Financial Director since November 2014, is now appointed as Chief Executive Officer of Regal Petroleum plc. 
Evgeniy Palyenka is appointed as the Financial Director of Regal Petroleum plc. Mr Palyenka joined the company's executive team as an advisor in August 2016.

The daily production of hydrocarbons by Smart Energy Group increased by 20% in the first half of 2017 – from 3,963 boe (barrels of oil equivalent) per day at the end of December 2016 to 4,769 boe per day at the end of June 2017.