Further to the announcement made on 21 August 2006 regarding the legal action brought by Chernihivnaftogasgeologia against the Ministry of Environmental Protection challenging the validity of Regal's production licences in the Ukraine, the Company advises that a hearing of this action was held yesterday, 19 September 2006, in the Kiev Commercial Court and the judgment of the Court was reserved until a later date.

For further information, please contact:

Regal Tel: 020 7408 9500
Roger Phillips, Finance Director 
Frank Scolaro, Non-executive Director