Corporate Update

Regal Petroleum PLC
02 September 2005


Immediate Release                                               2 September 2005


                              REGAL PETROLEUM PLC
                           ('Regal' or the 'Company')

                  Corporate, Operational and Trading Update

The Directors announce the following update on corporate, operational and
trading matters:-

Greece Operational Update: During August 2005 the Company's subsidiary in 
Greece, Kavala Oil, has experienced a degree of industrial unrest which has
recently escalated. In an attempt to resolve this situation the Company has met
with representatives of the Union at Kavala Oil and the relevant Ministry of the
Greek Government. The Company's actions in the face of the local difficulties
are inevitably dictated by concerns for the safety of its operations and local
staff. Accordingly, the Company has issued instructions for the operations to be
shut down whilst this dispute continues.

In addition, having experienced technical difficulties in recent weeks resulting
in disappointing production from its two recent well workovers, PA6 and PB27,
the Company has taken the decision to suspend its well workover programme. The
Company is now studying the potential for production from the Prinos field and
options for the exploration, appraisal of existing undeveloped oil, development
opportunities and future production in Greece. The Company discussed a number of
alternative proposals in this regard with the relevant Ministry of the Greek
Government in a meeting held on 31 August 2005 and the Greek Government is
actively considering these proposals.

Trading Update: In the announcement dated 29 July 2005, the Company stated that,
following the implementation of its well workover programme it expected daily
production in Greece to reach 3,500 barrels of oil per day by the end of 2005.
Following the disappointing results of the two workovers mentioned above, it is
likely that the anticipated increase in daily production rates will not be met.
This shortfall in production is exacerbated by the current industrial dispute in
Greece.

Accordingly, given the issues described above, the Board believes it is likely
that the Company will not meet current market expectations for the year ended 31
December 2005.

Audit of Reserves: The reserves reports on the Company's proven and probable
reserves in Greece and Ukraine are still being finalised by the respective
independent auditors. The Board expects to announce the results of the reserve
audits for Greece and Ukraine no later than the date of its interim results on
28 September 2005.

Notice of Interim Results: The Company will be announcing its interim results
for the six months ended 30 June 2005 on Wednesday, 28 September 2005. A
presentation to analysts and private client brokers will be held at the offices
of Buchanan Communications, 107 Cheapside, London at 9.30am.

For further information, please contact:

Regal                                   Tel: [phone]
Roger Phillips, Finance Director

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

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