Ukraine Update

Regal Petroleum PLC
07 December 2005


Immediate Release                                                7 December 2005

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

                                Ukrainian Update

The Directors are pleased to announce that the Supreme Commercial Court of
Ukraine has ruled in favour of Regal and dismissed the latest appeal brought by
Chernihivnaftogasgeologia ('CNGG'), thus upholding the earlier decisions of the
Poltava Court and the Kiev Court of Appeal with respect to the distribution of
assets within their former joint-venture.

In June 2004 the exploration/pilot production licences in which Regal had a 75
per cent. interest expired. Subsequently, Regal was awarded a 100 per cent.
interest in two 20 year production licences. Contemporaneously with the
expiration of the exploration/pilot production licences, the joint-venture
arrangement Regal had with CNGG also expired.

In the course of the dissolution of the joint-venture, an action was brought
before the local Poltava Court in order to distribute the assets of the
joint-venture to the partners. In August 2005 the Poltava Court ruled that the
physical assets of the joint-venture be distributed to Regal and that CNGG be
compensated for the value of its 25 per cent interest in the joint-venture.

CNGG lodged an appeal with the Kiev Court of Appeal contesting the Poltava Court
ruling, which appeal was dismissed in October 2005.

CNGG then lodged a further appeal to the Supreme Commercial Court of Ukraine.
The hearing of this appeal was held earlier today, when the Supreme Commercial
Court dismissed this appeal, thereby again ruling in Regal's favour.

For further information, please contact:

Regal                                                        Tel: [phone]
Roger Phillips, Finance Director

Buchanan Communications                                      Tel: [phone]
Bobby Morse                                               Mobile: [phone]




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