Licence Update

Regal Petroleum PLC
12 December 2006


For Immediate Release                                          12 December 2006


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


                          Ukrainian Licences Validated


The Company is pleased to announce that in the Ukrainian licence litigation, the
action was today brought before the Supreme Court of Ukraine who dismissed all
claims brought by Chernihivnaftogasgeologia ('CNGG') against the Ministry of
Environmental Protection ('MEP') challenging the validity of Regal's production
licences in the Ukraine and as a consequence affirmed the validity of Regal's
production licences.

The Supreme Court of the Ukraine is the final appellate court in Ukraine and its
judgments are final and cannot be further appealed.  Accordingly the licence
litigation is finally concluded.

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 27 September 2006, the Kiev Commercial Court 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.

At a hearing held earlier today, the Supreme Court of Ukraine ordered the
dismissal of all claims in the action brought by CNGG thereby cancelling the
earlier decisions made on 10 November 2005, 31 January 2006 and 5 May 2006.  The
Company is advised by its legal advisers in Ukraine that there is no further
right of appeal in this action and that accordingly this action is finally
concluded.

As a result the Company is advised by its legal advisers in Ukraine that the
effect of today's decision is that its production licences are valid according
to their terms of grant being 20 years from July 2004.

The Company will provide an update in due course with regards to the
developments of its Ukranian assets.



For further information, please contact:


Regal                                                       Tel: [phone]

Frank Scolaro, Non-Executive Chairman
Neil Ritson, Chief Executive Officer



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