Licence Update

Regal Petroleum PLC 12 December 2006 For Immediate Release 12 December 2006 REGAL PETROLEUM PLC ('Regal' or 'the Company') Ukrainian Licences Validated The Company is pleased to announce that in the Ukrainian licence litigation, the action was today brought before the Supreme Court of Ukraine who dismissed all claims brought by Chernihivnaftogasgeologia ('CNGG') against the Ministry of Environmental Protection ('MEP') challenging the validity of Regal's production licences in the Ukraine and as a consequence affirmed the validity of Regal's production licences. The Supreme Court of the Ukraine is the final appellate court in Ukraine and its judgments are final and cannot be further appealed. Accordingly the licence litigation is finally concluded. CNGG brought the legal action against its own parent organisation, the MEP, claiming that the correct procedures were not followed in the awarding of two production licences to Regal in July 2004. On 10 November 2005, at the initial hearing of such action, the Kiev City Commercial Court upheld CNGG's claim. On 31 January 2006, at the appeal hearing of such action, the Kiev Court of Appeal again upheld CNGG's claim. On 5 May 2006, at the further appeal hearing of such action, the Supreme Administrative Court of Ukraine again upheld CNGG's claim. On 18 August 2006, the Kiev Commercial Court ordered that this action be submitted to the Kiev Commercial Court for reconsideration of the earlier orders made in this action on the basis of new circumstances. On 27 September 2006, the Kiev Commercial Court ordered that the original decision of the Kiev City Commercial Court made on 10 November 2005 should be overturned (and thereby invalidating the decisions of the Kiev Court of Appeal made on 31 January 2006 and the Supreme Administrative Court of Ukraine made on 5 May 2006) and that Regal's production licences were issued in accordance with the correct procedures and are valid. At a hearing held earlier today, the Supreme Court of Ukraine ordered the dismissal of all claims in the action brought by CNGG thereby cancelling the earlier decisions made on 10 November 2005, 31 January 2006 and 5 May 2006. The Company is advised by its legal advisers in Ukraine that there is no further right of appeal in this action and that accordingly this action is finally concluded. As a result the Company is advised by its legal advisers in Ukraine that the effect of today's decision is that its production licences are valid according to their terms of grant being 20 years from July 2004. The Company will provide an update in due course with regards to the developments of its Ukranian assets. For further information, please contact: Regal Tel: 020 7408 9500 Frank Scolaro, Non-Executive Chairman Neil Ritson, Chief Executive Officer This information is provided by RNS The company news service from the London Stock Exchange