Ukrainian Update

Regal Petroleum PLC
21 August 2006


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Immediate Release                                                 21 August 2006


                              REGAL PETROLEUM PLC

                           ('Regal' or 'the Company')


                                Ukrainian Update


The Company advises that in relation to the legal action brought by
Chernihivnaftogasgeologia ('CNGG') against the Ministry of Environmental
Protection ('MEP') challenging the validity of Regal's production licences in
the Ukraine, Regal has obtained an order that this action be submitted to the
Kiev Commercial Court for consideration of new circumstances.


CNGG brought the legal action against its own parent organisation, the MEP,
claiming that the correct procedures were not followed in the awarding of two
production licences to Regal in July 2004.


On 10 November 2005, at the initial hearing of such action, the Kiev City
Commercial Court upheld CNGG's claim.


On 31 January 2006, at the appeal hearing of such action, the Kiev Court of
Appeal again upheld CNGG's claim.


On 5 May 2006, at the further appeal hearing of such action, the Supreme
Administrative Court of Ukraine again upheld CNGG's claim.


Following an application by Regal, the Kiev Commercial Court has made an order
that this action be submitted to the Kiev Commercial Court for reconsideration
of the earlier orders made in this action on the basis of new circumstances. In
addition this Court has ordered that the earlier orders made in this action be
stayed pending the hearing of the action in the Kiev Commercial Court.


The hearing of the action in the Kiev Commercial Court has been listed for 19
September 2006.





For further information, please contact:

Regal                                               Tel: [phone]

Roger Phillips, Finance Director
Frank Scolaro, Director



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