Placing

Regal Petroleum PLC
25 April 2005


Immediate Release                                                 25 April 2005

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

                   Placing of 11,500,000 New Ordinary Shares

1. Introduction and summary

The Directors of Regal today announce that the Company has raised £44,850,000
(before expenses) by way of a placing of 11,500,000 ordinary shares of 5 pence
each ('Ordinary Shares') at a price of 390p per share (the 'Placing'). The
Placing proceeds will be used to fund the working capital requirements of the
Company, further details of which are set out below.

2. Background to and reasons for the placing

Background
During late 2004 and the current year to date the Company has completed
successful exploration drilling and testing in the Suceava licence in Romania
and has completed the drilling of the second appraisal well in the Greater
Kallirachi Area in Greece, with the testing of this well still in progress.

The Suceava exploration well in Romania resulted in a significant dry gas
discovery. Current Regal mapping indicates a recoverable gas resource in the
Suceava licence of up to 3.8 trillion cubic feet (684 million barrels of oil
equivalent). It is the Company's intention to drill a series of shallow, low
cost appraisal/development wells in 2005 and 2006.

In conjunction with the drilling in Romania, the Company intends to drill
further appraisal/development wells in Kavala, Greece, with the number of wells
depending on the impending test results of the Kallirachi-2 appraisal well. In
addition, the Company intends to drill two exploration wells in the Egypt
concession area in 2005 and 2006.

The Ukraine operations continue to be profitable and generate positive cash flow
and accordingly all current projected working capital requirements for Ukraine
are expected to be funded from this positive cash flow.

Reasons for the Placing
The Directors believe that the proceeds of the Placing will enable the Company
to aggressively pursue its exploration, appraisal and development strategies in
Romania, Greece and Egypt as described above.

3.      Current trading and prospects

Please refer to the separate trading update released by the Company on 25 April
2005.

4. The Placing

The Company has today entered into a placing agreement with Evolution Securities
Limited ('Evolution'), pursuant to which, Evolution has agreed to use its
reasonable endeavours to procure placees for an aggregate of 11,500,000 new
Ordinary Shares ('Placing Shares') at a price of 390p per share ('Placing
Price'), or failing which, to subscribe itself, as principal, for such shares.
The Placing Price represents a discount of 3.11 per cent. to the closing middle
market price of 402.5p of an existing Ordinary Share on 22 April 2005, being the
latest practicable date prior to the release of this announcement. The Placing
Shares will represent 8.95 per cent. of the Company's issued capital immediately
following completion of the Placing.

Disapplication of statutory pre-emptive rights
At the Company's annual general meeting of shareholders held on 10 June 2004,
the Directors were given authority to allot new Ordinary Shares for cash on a
non pre-emptive basis up to an aggregate nominal amount of £577,180, equating to
11,543,600 new Ordinary Shares. Prior to the Placing, none of this authority had
been utilised.

Settlement and dealings
Application will be made to the London Stock Exchange for the Placing Shares to
be admitted to trading on AiM ('Admission'). It is expected that Admission will
occur, and dealings in the Placing Shares begin, at 8.00a.m. on 29 April 2005.

The Placing Shares will, when issued, rank pari passu in all respects with the
existing Ordinary Shares in issue, including the right to receive dividends and
other distributions declared following Admission.

5. Use of Proceeds

The Directors intend that the net proceeds of the Placing of approximately £42.6
million will be used to develop Regal's assets in Romania, Greece and Egypt as
follows:

a.       £20.0 million for the drilling of up to twelve appraisal/development
         wells in the Suceava and Barlad licences in Romania;
b.       £15.0 million for the drilling of further appraisal/development wells in
         Kavala, Greece;
c.       £4.0 million for the drilling of two exploration wells in the Egypt
         concession area; and
d.       £3.6 million for additional working capital requirements.

6. Placing statistics

Placing price                                                              390p

Number of Ordinary Shares being placed                               11,500,000

Net proceeds receivable by the Company                            £42.6 million

Number of Ordinary Shares in issue following Admission              128,508,201

Number of new Ordinary Shares as a percentage of the
existing issued share capital                                             8.95%

Commenting on the Placing Frank Timis, Executive Chairman, said:

'The additional working capital will fund the Company's aggressive programme of
maturing and exploiting the resources base of the Company to deliver significant
reserves, particularly in Romania, Greece and Egypt'.

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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