Further to the announcement dated 16 February 2006 regarding the shut down of production at the Company’s operations on its GOL/MEX and SV fields in Ukraine as a consequence of 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, Regal has received an order from the Supreme Administrative Court of Ukraine suspending the ruling of the Kiev Court of Appeal until the appeal to the Supreme Administrative Court of Ukraine is heard.

This order allows production at the Company’s operations on its GOL/MEX and SV fields in Ukraine to restart. Production will restart in the next few days.

Regal is awaiting notification of a hearing date for its further appeal to the Supreme Administrative Court of Ukraine to establish the validity of its licences.