Increase in Oil Interest

Regal Petroleum PLC
13 August 2004


Immediate Release                                     13 August 2004




                              REGAL PETROLEUM PLC

                                   ('Regal')



                      Increase in Kavala Oil S.A. Interest



The Directors of Regal are pleased to announce that following successful
negotiations Eurotech Services S.A. ('Eurotech'), a subsidiary of Regal, has
reached agreement to increase its shareholding in Kavala Oil S.A. ('Kavala')
from 67 per cent. to 95 per cent.



Eurotech, a 86.11 per cent. subsidiary of Regal, has agreed to subscribe for new
issued share capital in Kavala for a total consideration of €10 million (such
amount to be funded by a loan from Regal) thereby increasing its interest to 95
per cent. of the total issued capital of Kavala.  The remaining 5 per cent. of
the issued share capital of Kavala is owned by an association of Kavala's
employees.



Seismic Inversion Study: Regal is currently finalising the reprocessing of
seismic data, the inversion of the reprocessed seismic and the volumetric study
of the contingent resource in the Prinos Group basin, which includes the
Kallirachi discovery.  It is expected that this report will be finalised in
September 2004.



Infill Drilling: Kavala has commenced the drilling of its first infill well in
the Prinos North field and it is expected that this well will be completed in
September 2004.



The Directors intend to release a detailed Kavala operations update in September
2004.




Commenting on the increase in interest, Frank Timis, Chairman of Regal, said:

'The increase in ownership in Kavala is an important step in our strategy to
create significant returns for our shareholders.  Considerable progress has been
made in Greece over the past three months and we look forward to providing
shareholders with a detailed appraisal of this progress next month when the
studies have been completed.'



For further information please contact:


Regal                                                       Tel: [phone]
Frank Timis, Executive Chairman
Chris Phillips, Company Secretary

Buchanan Communications                                     Tel: [phone]
Bobby Morse





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