AIM Admission

Regal Petroleum PLC
27 September 2002


For Immediate Release                                   Friday 27 September 2002



                              REGAL PETROLEUM PLC

                            FIRST DAY OF DEALINGS ON
                       THE ALTERNATIVE INVESTMENT MARKET


Regal Petroleum plc ('Regal', 'The Group' or 'the Company' - RIC Code: RPT.L),
the London based independent oil and gas exploration and production company, is
pleased to announce the details of its successful £10m fund raising through an
institutional Placing ('the Placing') and its admission today to the Alternative
Investment Market of the London Stock Exchange ('AIM').  Evolution Beeson
Gregory is Nominated Adviser and Broker to Regal.


PLACING STATISTICS


Placing Price per Ordinary Share                                                  60p
Number of Ordinary Shares in issue immediately following Admission         57,316,667
Market capitalisation following the Placing at the placing price                 £34m
Total proceeds from the Placing                                                  £10m


Highlights:

-    Regal is an international petroleum group with a large commercial gas and
     condensate reserve in the Ukraine.  The Company has been active in the 
     Ukraine and other Eastern European countries since 1996.

-    Regal has a 75/25 joint venture with Chernihiv, a state owned exploration
     and drilling enterprise.

-    The asset which was discovered by Regal's JV partner in 1988 is situated
     in the most prolific gas and condensate region of the Ukraine (the
     Dneiper-Donets basin - 'the Gas Field').  This basin currently produces
     approximately 90% of Ukraine's gas and condensate.

-    Commercial production has commenced from their first well.

-    Funds raised will allow Regal to accelerate the development of the Gas
     Field to substantially increase production.

-    An independent report estimates that the Gas Field has a total proven and
     probable reserve of approximately 25.1 billion standard cubic metres 
     ('Bsm3') of gas and 5.84 million standard cubic metres ('MMsm3') of 
     condensate.

Commenting on the successful Placing and the first day of dealings on AIM, Frank
Timis, Executive Chairman of Regal, said:

'We have been pleased by the positive response from the investment community.
Regal is in commercial production and now has the financial resources to rapidly
increase production.  We have the expertise and assets to become a significant
international petroleum exploration and development company.'


For further information, please contact:


Regal                                                       Tel: [phone]
Frank Timis, Executive Chairman
Glenn Featherby, Finance Director
Bill Humphries, Non-Executive Director

Buchanan Communications                                     Tel: [phone]
Bobby Morse / Tim Thompson



Attached:                Information on Regal
                         The Regal Board


INFORMATION ON REGAL


History

Regal is an independent oil and gas exploration and production group. The Group
was founded in November 1996 by the current chairman, Frank Timis, for the
purpose of seeking opportunities in the oil and gas industry throughout Eastern
Europe.

The Group's operations have initially been established in Ukraine with a view to
exploiting the increasing energy requirements of Ukraine and its adjacent
European countries and the deregulation of the commercial production of natural
gas following Ukraine's independence from the former Soviet Union in 1991. In
July 2002, the Group opened its head office in central London.

In furtherance of its strategy, the Group conducted reviews of a number of oil
and gas projects in Ukraine between 1996 and 1999. Towards the end of this
period, the Group developed a relationship with Chernihiv, a Ukrainian
state-owned exploration and drilling company. In 1988, Chernihiv discovered the
Gas Field in the Dneiper-Donets basin in north-east Ukraine. This basin
currently produces approximately 90 per cent. of Ukraine's gas and condensate.


The Joint Venture Project

Chernihiv's exploration licences were granted to it by the Ministry of Ecology
and Natural Resources of Ukraine and are, in respect of three areas in the
Dneiper-Donets basin, known as SV, MEX and GOL. The relationship between
Chernihiv and Regal led to the Joint Venture Agreement being entered into in
August 1999 under which Regal acquired a 75 per cent. interest in the Joint
Venture Project.


Ukrainian operations

Up to 1989, 18 exploratory wells were drilled by Chernihiv in the Gas Field. Of
these wells, 12 have been flow-tested and demonstrated that commercial gas can
be produced. The Group's operations are currently focused on increasing
commercial production of gas from the Gas Field. In addition, Regal has
commenced drilling another development well. Troy-Ikoda, an independent expert,
has estimated that the reserves in the Gas Field total approximately 25.1 Bsm3
of proven and probable natural gas reserves and approximately 5.84 MMsm3 of
condensate reserves.


Group strategy and reasons for the Placing

The Group's strategy is to fully exploit the commercial production of gas and
condensate from the Gas Field. Initially, the Directors anticipate that gas will
be produced from three wells and thereafter from additional wells in the Gas
Field as they are made available for production.

The proceeds of the Placing will enable the Group to invest further in the
development of the Gas Field and provide the Group with the financial
flexibility to secure further gas and oil reserves in Ukraine and adjacent
territories. The Group also intends to extinguish all existing debt.


Current trading and prospects

Following completion of the work over of the MEX 3 well in July 2002, the Group
commenced initial production in August 2002. MEX 3 is currently producing
approximately 150 Msm3 of gas per day and approximately 2.3 tonnes of condensate
per day.

The Group has completed the drilling of GOL 2 and this well is currently being
tested prior to commercialisation and production. The Directors anticipate that
this well will commence production by the end of 2002. A further well, GOL 1,
has been identified and preparations are under way to commence a work over on
this well with production expected at the end of the year. In addition, the
Group has commenced the drilling of another well, SV 52. The drilling rig has
been installed and commissioned and drilling has commenced. The Directors
anticipate that this well will commence production by the end of 2003.


THE REGAL BOARD

Executive Directors

Frank Timis, aged 38 - Executive Chairman

Frank Timis founded Regal in November 1996 to seek opportunities in the oil and
gas industry in Eastern Europe. Mr Timis has significant business contacts in
Romania and Eastern Europe. He is currently executive chairman of Gabriel
Resources Limited, a gold mining company listed on the Toronto Stock Exchange
and a member of the TSE 300 Composite Index. As at 30 August 2002 Gabriel
Resources Limited had a market capitalisation of approximately US$360 million.
He is also currently chief executive of European Goldfields Limited, a precious
metal exploration company listed on the Canadian Ventures Exchange. Both of
these companies have significant interests in Eastern Europe.


Gregory Lee, aged 46 - Managing Director

Gregory Lee became a chartered professional engineer in 1987 and is a member of
the Institute of Engineers (Australia) and the society of Petroleum Engineers.
He has over 20 years' experience in petroleum engineering, drilling and
production operations. He has been an independent consultant petroleum engineer
to major oil and gas companies since July 1991. Prior to his consulting work Mr
Lee worked for West Australia Petroleum Limited (a Chevron, Texaco, Shell and
Ampol joint venture), Western Mining Corporation Limited (Petroleum Division),
Bond Petroleum Pty. Limited and, via a contractor, Woodside Petroleum Limited.


Glenn Featherby, aged 46 - Finance Director

Glenn Featherby is a Chartered Accountant and member of the Institute of
Chartered Accountants in Australia. He has over 20 years' experience in
corporate advisory work and has worked extensively in the resources sector. He
worked with KPMG in Perth, Western Australia and London before establishing his
own accounting practice in Perth in 1998. He has also been a non-executive
director of Gabriel Resources Limited. Prior to joining the Board, Mr Featherby
acted as financial consultant to the Group since it was founded and has
extensive experience in the Eastern European market.


Bill Humphries, aged 61 - Non-Executive Director

William Humphries has 30 years' experience in the mining and civil engineering
industries of Western Australia. From 1996 to 1998 he was the general manager of
Sardinia Gold Mining SpA. From January 1999 to July 2002 he was the managing
director of Brancote Holdings PLC, a mining company listed on AIM. On 3 July
2002, Meridian Gold, Inc., a company listed on the Toronto and New York Stock
Exchanges, announced that its £159 million offer for Brancote Holdings PLC had
been declared unconditional in all respects. Mr Humphries is currently president
of Landore Resources Inc, a mining company listed on the Canadian Ventures
Exchange.


Frank Wheatley, aged 44 - Non-Executive Director

Frank Wheatley is a lawyer who was called to the Canadian bar in 1985. He was
Vice President of Legal Affairs at Eldorado Gold Corporation in Canada between
1996 and 1998. Mr Wheatley is currently a director of Gabriel Resources Limited.

Copies of the Placing Prospectus document are available free of charge from the
Company's registered office and the offices of Osborne Clarke both at Hillgate
House, 26 Old Bailey, London EC4M 7HW, during normal business hours on any
weekday (Saturdays and public holidays excepted) and will remain available for
at least one month after Admission.


                      This information is provided by RNS
            The company news service from the London Stock Exchange