The Company announces that an unsuccessful well test has been conducted in the ERB-B-1X well operated by Apache East Ras Budran Corp. LDC (“Apache”) in the East Ras Budran ("ERB") Concession in which Regal holds a 25% working interest. 

The well was spudded on 7 October 2007 and drilled to a total depth of 5,146 feet in basement, several zones in the well had oil shows and the well was subsequently tested without a productive flow of oil being achieved.  The well is now being plugged and abandoned.

The ERB-B-1X well is the second of two commitment wells in the initial exploration period of the ERB Concession.  An additional exploration well, ERB-B-2X, is now under consideration to be drilled in late 2007 if a suitable drilling rig can be mobilised to the area.

For further information, please contact:

Regal Tel: 020 7408 9500
David Greer, Chairman & CEO

Evolution Securities Tel: 020 7071 4300
Robert Collins

Mirabaud Securities Tel: 020 7321 2508
Pav Sanghera

In accordance with the guidelines of the AIM market of the London Stock Exchange, Neil Ritson BSc (Hons) Geophysics, FGS, is the qualified person that has reviewed the technical information contained in this press release.