Update on Contract

Regal Petroleum PLC
31 August 2005


Immediate Release                                                31 August 2005

                              Regal Petroleum plc
                           ('Regal' or the 'Company')

                               Update on Contract

Further to the Company's announcement of 29 July 2005, the Company advises that
it is continuing discussions with Peak Resources Limited of Hong Kong ('Peak
Resources') with a view to selling all or part of the Company's Ukraine assets.
The terms of any acquisition are likely to be different to those outlined in the
previous announcement.  Peak Resources has unilaterally extended its option in
accordance with its purported terms by one month to 30 September 2005, although
the Company continues to assert that it considers the option to be invalid and
unenforceable. The Company will make an announcement on completion of these
discussions.

For further information please contact:

Bobby Morse
Buchanan Communications                               Tel: [phone]



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