Ukrainian Update

Regal Petroleum PLC
28 September 2006


For Immediate Release                                          28 September 2006

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

                                Ukrainian Update


The Company is pleased to announce that late yesterday the Kiev Commercial Court
delivered its decision arising from the hearing held on 19 September 2006 in 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.  The Kiev Commercial Court made an order
that the original decision made on 10 November 2005 be overturned and that
Regal's production licences were correctly and validly granted.

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.

On 18 August 2006, the Kiev Commercial Court ordered 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.  On 19 September 2006,
the action was heard in the Kiev Commercial Court and the Court's decision was
reserved to a later date.

On 27 September 2006, the Kiev Commercial Court delivered its decision of the
hearing held on 19 September 2006 and ordered that the original decision of the
Kiev City Commercial Court made on 10 November 2005 should be overturned (and
thereby invalidating the decisions of the Kiev Court of Appeal made on 31
January 2006 and the Supreme Administrative Court of Ukraine made on 5 May 2006)
and that Regal's production licences were issued in accordance with the correct
procedures and are valid.

The Company continues to work closely with its Ukrainian lawyers and will
provide additional updates as further information becomes available.


For further information, please contact:

Regal                                                       Tel: [phone]

Roger Phillips, Finance Director
Frank Scolaro, Non-executive Director



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