Settlement of Dispute

Regal Petroleum PLC
19 May 2006


For Immediate Release                                                19 May 2006


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                              REGAL PETROLEUM PLC

                                ('the Company')


                       Settlement of Contractual Dispute


The Company is pleased to advise that the on-going dispute between the Company
and Peak Resources Limited of Hong Kong in respect of the validity of an option
relating to the Company's assets in Ukraine has been settled with the effect
that the disputed option is now terminated.


For the avoidance of doubt, this settlement is not in any way related to the
on-going litigation in Ukraine regarding the validity of the Company's Ukrainian
production licences and the position in this regard remains as announced by the
Company on 9 May 2006.



For further information, please contact:

Regal Petroleum plc                                           Tel: [phone]
Paul Morgan - Chairman & CEO

Buchanan Communications                                       Tel: [phone]
Bobby Morse







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