Ukraine Partial Divestment

Regal Petroleum PLC
14 September 2007



Immediate Release                                              14 September 2007

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

                           Ukraine Partial Divestment

The Company is pleased to announce that following the competitive partial divest
ment process run by Tristone Capital Limited on the Company's behalf in relation
to the Mekhediviska-Golotvschinska ('MEX-GOL') and Svyrydivske ('SV') gas and
condensate fields in Ukraine, Regal has entered into an exclusive Memorandum of
Understanding ('MOU') with the private oil and gas company, MND Exploration and
Production Limited ('MND').  Under the terms of the proposed transaction, which
is for a 50% interest in the Ukrainian production assets, KKCG Oil and Gas BV,
MND's holding company in The Netherlands, will invest a total US$330,000,000 in
the development of the MEX-GOL and SV fields.

Audited proven and probable reserves in the MEX-GOL and SV fields are currently
estimated to be 169 mmboe (RyderScott, 2005) and it is envisaged that developme
nt will require the drilling of a significant number of development wells in
order to achieve projected peak production rates and recovery of these reserves.

The terms of the MOU allow the Company and MND to conduct due diligence and
negotiate transaction documentation on an exclusive basis, but it must be
stressed however that, save in respect of certain matters, the MOU is
non-binding and conditional upon due diligence and the execution of transaction
documentation. In addition, save as set out herein, the terms of the MOU remain
confidential.

Regal's Chief Executive Officer, Neil Ritson, said: 'The Regal assets in Ukraine
have attracted considerable interest from bidders and we are delighted that the
proposed deal with MND will provide an immediate acceleration of activity and
sustained investment. Having considered the merits of the proposals from all
bidders covering a diverse range of capabilities we strongly believe that MND
offers the best opportunity to realise shareholder value in our Ukrainian
assets. MND has excellent technical and operational expertise and we feel
confident that working together in a jointly operated venture, Regal and MND,
will create the greatest project value.'
The Company would like to stress that the signing of the MOU does not imply that
any transaction is certain to occur or that the proposed transaction will reach
completion.


For further information, please contact:

Regal                                                Tel: [phone]

Neil Ritson, Chief Executive Officer
Frank Scolaro, Chairman

Evolution Securities                                 Tel: [phone]
Robert Collins

Mirabaud Securities                                  Tel: [phone]
Pav Sanghera

Buchanan Communications                              Tel: [phone]
Bobby Morse



Definitions:

mmboe million barrels of oil equivalent
boe barrels of oil equivalent

In accordance with the guidelines of the AIM market of the London Stock
Exchange, Neil Ritson BSc (Hons) Geophysics,  FGS, Chief Executive Officer of
Regal Petroleum plc, is the qualified person that has reviewed the technical 
information contained in this press release.

Further information on Regal and MND can be found on their respective websites
as follows:-

Regal - www.regalpetroleum.co.uk

MND - www.mnd-uk.com




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