Further to the Company's announcement dated 3 October 2005 regarding the legal action brought by Chernigivnaftogasgeologia (“CNGG”) against the Ministry of Environmental Protection challenging the process used in the grant of Regal's production licences in the Ukraine, Regal has been advised by its legal counsel in the Ukraine that at the initial hearing of such action, CNGG's claim was upheld.

Regal is awaiting written details of such decision but intends to now join such legal proceedings and will vigorously defend the legality of its licences, which remain in force pending further legal action.  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 / Ben Willey