UPDATE 1-Regal Petroleum receives alternative approach

* Continues to recommend offer from Energees Investment

* New approach at 25 pence per share vs 24 pence offer

* Alternative proposal would involve reverse takeover (Adds detail)

LONDON, Jan 18 (Reuters) - Oil explorer Regal Petroleum RPT.L said it received an alternative takeover proposal but continued to recommend the 77 million pound ($123 million) bid already on the table given uncertainty the approach would become a firm offer.

Regal said on Tuesday that Cyprus-based financing company Heamoor and private oil explorer Geo-Alliance made a proposal which would see Regal combined with Geo-Alliance and Regal shareholders given the option to sell their shares to Heamoor.

The proposed deal, which would see Regal and Geo-Alliance’s Ukrainian oil assets combined, would offer Regal shareholders 25 pence per share, higher than the 24 pence per share offer made by Energees Investments in December and recommended to shareholders by Regal’s board. [ID:nLDE6BC0CP]

“The board of Regal continues to recommend the Energees offer until such time as a superior firm offer is put forward to Regal shareholders,” said Regal in a statement.

Regal pointed to the uncertainty of a firm offer materialising and the complexity of the alternative proposal which would involve Geo-Alliance undertaking a reverse takeover of Regal.

Regal shareholders have until Jan. 24 to accept the offer from Energees and Regal said the Energees offer may not remain open past that date.

Heamoor and Geo-Alliance said any firm offer for Regal would come no later than Feb. 10.

(Reporting by Sarah Young; Editing by Julie Crust)

$1=.6268 Pound