The Board of the Company has today allotted 2,000,000 Ordinary Shares of 5p each (“Ordinary Shares”). 400,000 Ordinary Shares are being issued to Mr P Morgan, a former President of Regal Petroleum Corporation Limited, in full and final settlement of a claim brought by Mr Morgan against the Company with respect to wrongful dismissal. 1,600,000 Ordinary Shares are being issued to the Regal Petroleum plc Employee Benefits Trust (“Employee Benefits Trust”) and, in accordance with the Company's Executive Option Scheme, the Trustee will be requested to grant reversionary interests over the shares (“Awards”), subject to certain performance conditions, as follows: Recipient Number of Ordinary Shares Exercise Price per Ordinary Share

Lord St John - 500,000 - 83.5p

Mr G R Featherby - 300,000 - 85.5p

Mr C Phillips - 500,000 - 85.5p

300,000 Ordinary Shares will be retained by the Employee Benefits Trust for further Awards. The above Awards granted to the directors and employee will only be able to vest after a period of 6 months. These reversionary interests over Ordinary Shares have been granted for nil consideration. In addition the Board of the Company has resolved to grant the following unapproved options over Ordinary Shares: Recipient Number of options over Ordinary Shares Exercise price per Ordinary Share Exercise period

Mr V F Timis - 500,000 - 85.5p - 1 month from grant

Mr G Nolte - 300,000 - 85.5p - 1 month from grant

Mr W H Humphries - 150,000 - 85.5p - 1 month from grant

Mr H Loutsigkas - 300,000 - 85.5p - 6 months from grant

These options over Ordinary Shares have been granted for nil consideration.

The Board recognises the need to attract, incentivise and retain employees and, to this end, the Company has granted the above options.

Application has been made to the Alternative Investment Market of the London Stock Exchange (“AIM”) for the admission to trading of these 2,000,000 Ordinary Shares. Dealings are expected to commence on 24 December 2003 on AIM.

For further information, please contact:

Regal Petroleum plc
Tel: 020 7647 6622
Glenn Featherby, Finance Director


Buchanan Communications
Tel: 020 7466 5000
Bobby Morse