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 Petroleum plc Tel: 020 7647 6622
Frank Timis, Executive Chairman 
Stephen West, Company Secretary

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