Completion of Drilling

Regal Petroleum PLC
23 January 2004


For Immediate Release                                      23 January 2004




                              REGAL PETROLEUM PLC

                                   ('Regal')

          Kavala Oil S.A. Completes Drilling of First Kallirachi Well



The directors are pleased to announce that Kavala Oil S.A. ('Kavala') has
successfully completed the drilling of an exploration well to a depth of 2,556
metres in the Kallirachi exploration field in Greece, and that the presence of
hydrocarbons has been detected.



Initial logging of the well indicates a 200 metre gross pay zone with a 61 metre
sweet oil net pay zone.



Additional technical interpretation and analysis has commenced in order to
quantify and confirm the deliverability of the reservoir.  Regal will announce
the findings of the technical interpretation as soon as they are completed.



The cost of drilling was within budget and was funded from the credit facility
provided by Regal to Kavala



Prior to the drilling of the exploration well, independent experts estimated
that the field may contain up to 227 million barrels of recoverable oil.  The
initial results of this exploration well confirm the confidence of the Directors
in the considerable potential of the Kallirachi field.



Kavala is a private company incorporated in Greece in which Regal has an
indirect 57.69 per cent. interest.



For further information, please contact:


Regal                                                       Tel: [phone]
Frank Timis, Executive Chairman
Stephen West, Company Secretary

Buchanan Communications                                     Tel: [phone]
Bobby Morse / Catherine Miles





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