The directors are pleased to announce that Kavala Oil S.A. (“Kavala”) has commenced drilling of an exploration well at the Kallarachi exploration field. Based on an independent opinion by consultants Troy Ikoda, the field is expected to contain up to 227 million barrels of recoverable oil.

The well is scheduled to be drilled to its target depth of 2,500 metres by 31 January 2004 and is budgeted to cost US$8.5 million. The cost of drilling is being funded by the US$30 million credit facility provided by Regal to Kavala.

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 Petroleum plc Tel: 020 7647 6622 
Frank Timis, Executive Chairman   
Glenn Featherby, Finance Director   

   
Buchanan Communications  Tel: 020 7466 5000 
Bobby Morse / Catherine Miles