The Directors are pleased to announce that Regal has been successfully awarded an interest in two exploration blocks in Liberia.

In October 2004 Regal, together with European Hydrocarbons Limited (“EHL”), (hereafter jointly referred to as the “Liberia consortium”) submitted a bid application to the National Oil Company of Liberia (“NOCAL”) for certain offshore exploration blocks.  Regal has now been notified that the bid application was successful and that the Liberia consortium has been awarded two contiguous exploration concessions (Blocks 8 and 9) for an initial period of three years, with a right to extend for a further four years.  The application fee was US$10,000.  In accordance with the terms of the bid application the Liberia consortium has acquired a licence to a substantial 2D seismic data package at a cost to the Liberia consortium of US$960,000.

Under the terms of the award the Liberia consortium has seismic work commitments of US$4.5 million and US$4 million for the two concessions respectively and no drilling commitments.  Negotiations with NOCAL to finalise the terms for the production sharing agreement will commence shortly.

Offshore Liberia is one of the last virtually unexplored frontiers of the prolific West African offshore area.  It is known to have working petroleum systems, similar to those found in oil producing basins along the West African margin, and large already identified structural and stratigraphic traps.  With the application of modern 3D seismic data for exploration, drilling success rates in West Africa have been high, with several recent discoveries. Acquiring modern 3D data to evaluate these blocks is the most cost effective way to mature a portfolio of large prospects for drilling, and to decrease exploration risk significantly before the commencement of drilling.

Regal and EHL have 25% and 75% interests respectively in the Liberia consortium.  EHL is a privately owned company in which both Regal and Frank Timis, Executive Chairman, hold beneficial interests.

Frank Timis, Executive Chairman, commented: “We are very excited with the awarding of this new Liberia interest as it provides us with further diversity on our existing portfolio and should add significant upside in the future.  There has been a string of recent discoveries in West Africa and we hope to share in this success by applying 3D seismic during the exploration stage.”

For further information, please contact:

Regal Tel: 020 7408 9500
Frank Timis, Executive Chairman 
Roger Phillips, Finance Director 

 
Buchanan Communications Tel: 020 7466 5000
Bobby Morse / Ben Willey