RPT.L Regulatory News (RPT)

13 Sep 2005 07:02

Regal Petroleum PLC13 September 2005 Immediate Release 13 September 2005 REGAL PETROLEUM PLC ("Regal" or the "Company") Greece Operational Update The Board of Regal are pleased to advise that a settlement has been reached withthe Union at Kavala Oil SA, Regal's subsidiary in Greece, in respect of therecent industrial unrest. Under the settlement, it has been agreed that theoperational management of Kavala Oil SA, including the economics of operations,shall be undertaken by Greek local management, with the assistance of theunionised workforce with the aim of making the operation successful. Regal'sparticipation will remain as the majority shareholder of Kavala Oil SA butwithout participating in the day to day operational management. Following this settlement, Kavala Oil SA will continue its production operationsas previously, although Regal is not intending to re-implement its wellwork-over programme at present, and will consider the economic viability offurther support or investment in Kavala Oil SA including development ofcurrently undeveloped but discovered oil, and pursuing exploration potential,once the economics of the operation under Greek local management has beenassessed. For further information, please contact: Regal Tel: 020 7408 9500Rex Gaisford, Chief ExecutiveRoger Phillips, Finance Director Buchanan Communications Tel: 020 7466 5000Bobby Morse / Ben Willey This information is provided by RNS The company news service from the London Stock Exchange