Ukrainian Update

Regal Petroleum PLC 31 January 2006 Immediate Release 31 January 2006 REGAL PETROLEUM PLC ('Regal' or 'the Company') Ukrainian Update Further to the announcement dated 11 November 2005 regarding the legal challenge brought by Chernihivnaftogasgeologia ('CNGG') against the Ministry of Environmental Protection ('MEP') with respect to the validity of Regal's production licences in the Ukraine, Regal has appealed such ruling to the Kiev Court of Appeal but such appeal has been unsuccessful. 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 11 November 2005, at the initial hearing of such action, the Kiev City Commercial Court upheld CNGG's claim. Regal lodged an appeal to the Kiev Court of Appeal contesting the earlier ruling. The result of this appeal was delivered earlier today when the Court dismissed Regal's appeal. Regal is awaiting written details of such decision but has already launched a further appeal to the Supreme Administrative Court of Ukraine to establish the legality of its licences. The Company continues to be advised by its legal counsel in Ukraine that the Company was awarded its licences in accordance with applicable rules, standards and legislation of Ukraine. For further information, please contact: Regal Tel: 020 7408 9500 Roger Phillips, Finance Director Buchanan Communications Tel: 020 7466 5000 Bobby Morse This information is provided by RNS The company news service from the London Stock Exchange
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