Further to recent media commentary, the Company confirms that as a result of the decision of the Kiev Court of Appeal announced on 31 January 2006 regarding the legal challenge brought by Chernihivnaftogasgeologia (“CNGG”) against the Ministry of Environmental Protection (“MEP”) with respect to the validity of Regal's production licences in the Ukraine, production has been shut down at the Company's operations on its GOL/MEX and SV fields in Ukraine.  The Company has lodged an application to the Supreme Administrative Court of Ukraine seeking an order that production be re-opened pending Regal's further appeal to the Supreme Administrative Court of Ukraine to establish the legality of its licences. 

For further information, please contact:

Regal Tel: 020 7408 9500
Roger Phillips, Finance Director 
 
Buchanan Communications Tel: 020 7466 5000
Bobby Morse