The Board of Regal are pleased to advise that a settlement has been reached with the Union at Kavala Oil SA, Regal's subsidiary in Greece, in respect of the recent industrial unrest.  Under the settlement, it has been agreed that the operational management of Kavala Oil SA, including the economics of operations, shall be undertaken by Greek local management, with the assistance of the unionised workforce with the aim of making the operation successful.  Regal's participation will remain as the majority shareholder of Kavala Oil SA but without participating in the day to day operational management.

Following this settlement, Kavala Oil SA will continue its production operations as previously, although Regal is not intending to re-implement its well work-over programme at present, and will consider the economic viability of further support or investment in Kavala Oil SA including development of currently undeveloped but discovered oil, and pursuing exploration potential, once the economics of the operation under Greek local management has been assessed.

For further information, please contact:

Regal Tel: 020 7408 9500
Rex Gaisford, Chief Executive 
Roger Phillips, Finance Director 
 
Buchanan Communications Tel: 020 7466 5000
Bobby Morse / Ben Willey