Ukrainian Update

Regal Petroleum PLC
09 May 2006


Immediate Release                                                    9 May 2006





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

                                Ukrainian Update


In July 2004 Regal was awarded 100% interests in two 20 year production licences
in respect of the Mekhediviska/Golotvschinska (MEX-GOL) and Svyrydivske (SV) gas
/condensate fields in Ukraine.  Regal had previously been in a joint venture
since August 1999 with Chernihivnaftogasgeology ('CNGG') in respect of these
concession areas.


In order to clarify the legal actions which have previously been announced by
the Company, summaries are set out below:-



1.   Licence Action



CNGG brought legal proceedings against its own parent organisation, the Ministry
of Environmental Protection ('MEP'), claiming that the correct procedures were
not followed in awarding the two production licences to Regal.  At a hearing
held on 10 November 2005, the Kiev City Commercial Court upheld CNGG's claim.
Regal joined these proceedings as a third party to protect its interests.



Regal appealed the decision of the Kiev City Commercial Court to the Kiev Court
of Appeal.  At a hearing of this appeal held on 31 January 2006 the Kiev Court
of Appeal dismissed Regal's appeal and upheld CNGG's claim.  As a result of the
decision Regal shut down production at the Company's operations at the MEX-GOL
and SV fields.



Regal lodged a further appeal to the Supreme Administrative Court of Ukraine as
well as an application to recommence production pending the hearing of such
further appeal.  At a hearing held on 27 February 2006 the Supreme
Administrative Court of Ukraine granted an order allowing Regal to re-commence
production at the fields.



On 5 May 2006 Regal's appeal to the Supreme Administrative Court of Ukraine was
heard when the Supreme Administrative Court of Ukraine dismissed Regal's appeal.
Regal is currently awaiting written details of this decision and will then
launch a further appeal to the Supreme Court of Ukraine.  In the meantime as a
result of the decision of the Supreme Administrative Court of Ukraine, Regal has
shut down production operations at its GOL/MEX and SV fields in Ukraine.  Within
the further appeal proceedings, Regal is intending to lodge an application for
an order to allow production to be re-started pending the hearing of such
further appeal.



2.   Joint Venture Dissolution Action



In May 2005 an action was commenced in Poltava Court seeking orders that the
previous joint venture between Regal and CNGG be dissolved and the physical
assets of the joint venture be distributed between the parties.  The assets
consisted of, inter alia, 6 wells, a gas processing facility to dry gas and
recover condensate with a capacity of 1 million cubic metres per day, pipeline
reticulation to the plant and a 13.2 kilometre 325 mm pipeline connecting the
gas plant to the main Kursk-Kiev export trunk pipeline.



In a hearing of this action on 22 August 2005, the Poltava Court awarded the
physical assets to Regal and compensation to CNGG for its share of the joint
venture assets.



CNGG lodged an appeal of the decision to the Kiev Court of Appeal.  This appeal
was heard on 11 October 2005 when the Kiev Court of Appeal dismissed CNGG's
appeal and upheld the original decision.



CNGG then lodged a further appeal to the Supreme Commercial Court of Ukraine.
This appeal was heard on 7 December 2005 when the Supreme Commercial Court of
Ukraine dismissed the appeal thereby ruling in Regal's favour.



CNGG lodged a further appeal to the Supreme Court of Ukraine which was heard on
20 February 2006 when the Supreme Court of Ukraine ruled in favour of Regal and
dismissed the final appeal brought by CNGG.





Regal believes in the sanctity of the laws of the Ukraine, is advised by its
Ukrainian lawyers that it has complied with the laws of the Ukraine in respect
of the grant of its production licences, that the production licences were
awarded in accordance with the applicable legislation in the Ukraine and that
therefore the validity of its production licences will ultimately be upheld.





For further information, please contact:

Regal                                          Tel: [phone]

Paul Morgan, Chairman & CEO

Buchanan Communications                        Tel: [phone]
Bobby Morse







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