2nd Kallirachi Well, Greece

Regal Petroleum PLC
21 October 2004


Immediate Release                                           21 October 2004






                              REGAL PETROLEUM PLC

                                   ('Regal')



              Drilling Commenced on Second Kallirachi Well, Greece





The Directors are pleased to announce that Kavala Oil S.A. ('Kavala') has
commenced drilling of an additional well in the Greater Kallirachi Area.



Following the completion of the independent Greater Kallirachi Area Study in
September 2004, which confirmed the volumetric estimate of up to 1 billion
barrels in place, Regal has confirmed two well locations for appraisal/
development drilling.  The first of these wells has commenced drilling and the
drilling of the second well is scheduled for Q1 2005.



The first appraisal/development well is scheduled to be drilled to its target
depth of 3,200 metres by 31 December 2004 and is budgeted to cost US$10.5
million.  The well will be evaluated in three different horizons with complete
logging suites including sidewall coring, VSP checkshots and fluid samples in
each interval.  Following flow and pressure testing a hydraulic frac treatment
of the most prolific horizon will be carried out.



Kavala is a private company incorporated in Greece in which Regal has an
indirect 81.66 per cent. interest.



Commenting on the commencement of the appraisal/development drilling programme
in Kallirachi, Frank Timis, Executive Chairman, said:



'Having completed the independent study on the Greater Kallirachi Area, which
included work on volumetrics, 3D seismic inversion and interpretation,
geological modelling and structural mapping, we have identified two appropriate
appraisal/development well locations, the first of which we have now started to
drill. We look forward to announcing the results of this drilling programme in
Q1 2005.'



For further information, please contact:


Regal                                                       Tel: [phone]
Frank Timis, Executive Chairman
Roger Phillips, Finance Director

Buchanan Communications                                     Tel: [phone]
Bobby Morse / Ben Willey





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