Response to Media

Regal Petroleum PLC
14 November 2005


Immediate Release                                               14 November 2005



                              REGAL PETROLEUM PLC

                                   ('Regal')



                               Response to Media



Commenting upon the weekend's press commentary on its announcement made on
Friday, 11 November 2005, the Board of Regal would like to make the following
statement:



Regal has made it very clear that there were two sets of legal proceedings that
affected its business operations in Ukraine. This was spelled out in the
Company's announcement made on 29 September 2005 when the second of these legal
proceedings first manifested itself and again on 3 October 2005 when the outcome
of the Appeal in the first case became available. Previously on 26 September
2005 Regal issued an announcement explaining the circumstances of the first case
in detail.



Details of the two cases:

The first case involves a dispute on the dissolution and distribution of the
assets of the previous joint venture in Ukraine between Regal and
Chernigivnaftogasgeologia (CNGG). The joint venture, 75% Regal and 25% CNGG,
covered the exploration of and pilot production from what are now Regal's
Ukrainian licences/assets. It is a case brought by Regal to establish the
position regarding the distribution of assets (wells and infrastructure)
following the dissolution of the joint venture in June 2004, prior to the award
of the present 20 year production licences to Regal. It does not relate to the
validity of these production licences.



The initial hearing of this case found in favour of Regal directing that the
physical assets of the joint venture be acquired by Regal from CNGG with a cash
compensation payment. This payment was determined by an auditor appointed by the
Court.  This ruling was appealed by CNGG and early in October 2005 this appeal
was heard and the Appeal Court upheld the ruling of the original court. CNGG
have again appealed, this time to the Ukraine Supreme Commercial Court and this
further appeal will be held in the near future. It is at the discretion of
either party, irrespective of the outcome of any further appeal, to take this
case to the Ukraine Supreme Court for a final and absolute ruling.



The second case has been brought by CNGG against its own parent organisation,
the Ministry of Environmental Protection (MEP). Despite Regal not being a party
in this case, the Company believes that the real aim of this action is to damage
the interests of Regal. The basis of this claim is that the State Committee, the
predecessor to the MEP, when awarding the production licences to Regal did not
follow correct procedure and that therefore the production licences are not
valid. Despite not being a participant in this case, Regal and its legal counsel
in Kiev have followed it closely and have always been convinced that this
assertion is not valid. The Board was therefore surprised by the outcome
announced  last Friday, 11 November 2005 that the Court had found in favour of
CNGG. Regal will itself join these proceedings and launch an appeal which it now
has a formal right to do. Regal is confident that this appeal process will
result in a favourable outcome.



The Company is seeking to have both of these cases concluded with favourable
outcomes for Regal with rulings possibly at the highest level of legal standing
in Ukraine, the Ukraine Supreme court. This legal process is well underway in
the first case but only at the beginning of the process in the second case.



Ukraine is a country undergoing a period of massive social and political change.
It is currently pursuing applications to join the WTO and the European Union. It
is taking well publicised steps to establish its political, commercial, fiscal
and legal institutions as being appropriate to those legitimate aims.



Therefore Regal, as a foreign investor with a large stake in Ukraine, is
confident that the legal proceedings now underway which affect its Ukraine
assets will be dealt with, in a correct and proper manner. Specifically, that
its current licences will be upheld, that the decision handed down determining
the dissolution of its previous joint venture will be ratified and that its
future intentions to invest further in the economy of Ukraine will be rewarded
with success.



Regal will announce further updates as the above issues are concluded.



For further information please contact:


Regal                                                         Tel: [phone]
Rex Gaisford, Chief Executive
Roger Phillips, Finance Director

Buchanan Communications                                       Tel: [phone]
Bobby Morse / Ben Willey




                      This information is provided by RNS
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