Ukraine Update

Regal Petroleum PLC
21 November 2007





Immediate Release                                               21 November 2007
                                                                           

                              REGAL PETROLEUM PLC

                           ('Regal' or 'the Company')


                       Update Ukraine Partial Divestment


The Company wishes to inform the market that the period of exclusive
negotiations entered into with MND Exploration and Production Limited ('MND') in
September 2007 has now come to an end without concluding an agreement in the
timetable set out in the Memorandum of Understanding between the parties. The
Company is however pleased to announce that it has entered into a Memorandum of
Understanding (the 'Shell Memorandum of Understanding') with Shell Exploration &
Production Ukraine Investments (1) BV ('Shell').


The Shell Memorandum of Understanding sets out the proposed outline terms for a
proposed transaction with Shell relating to the acquisition by Shell of a 51%
interest in Regal Petroleum (Jersey) Limited, a wholly owned subsidiary of Regal
and indirectly the holder of the licences for the Mekhediviska-Golotvschinska
('MEX-GOL') and Svyrydivske ('SV') gas and condensate fields in Ukraine. The
Shell Memorandum of Understanding provides that if the transaction is concluded
Shell will pay a total of US$410,000,000, made up of US$50,000,000 as a cash
consideration to Regal for the transfer of 51% of the share capital of Regal
Petroleum (Jersey) Limited and the first US$360,000,000 of the total capital
expenditure in the development of the MEX-GOL and SV fields.


The terms of the Shell Memorandum of Understanding allow the Company and Shell
to conduct due diligence and negotiate transaction documentation during an 8
week period on an exclusive basis, but it must be stressed however that, save in
respect of certain matters, the Shell Memorandum of Understanding 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 Shell
Memorandum of Understanding remain confidential.


Regal's Chairman, Francesco Scolaro, commented that 'The interest of Shell
demonstrates the underlying value of our assets in Ukraine and further underpins
the future potential in these assets and in the Company. The offer from Shell
improves on that previously made by MND and I am delighted with the efforts of
the management to deliver value and I have every confidence in the Company in
the future.'


Neil Ritson, Chief Executive Officer, said; 'We look forward to working with
Shell since their commercial and technical skills will greatly assist in
accelerating the field development work we have already started.'


The Company would like to stress that the signing of the Shell Memorandum of
Understanding 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
Francesco Scolaro, Chairman

Evolution Securities                                 Tel: [phone]
Robert Collins
Tim Redfern

Mirabaud Securities                                  Tel: [phone]
Pav Sanghera

Buchanan Communications                              Tel: [phone]
Bobby Morse
Ben Willey








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