Page last updated at 12:15 GMT, Tuesday, 17 November 2009

Regal Petroleum in 600,000 fine

Oil pipes
The fine handed down to Regal is the biggest in Aim's history

Oil exploration firm Regal Petroleum has been fined £600,000 by the London Stock Exchange (LSE) for "serious breaches" of exchange rules.

The LSE said Regal had failed to ensure its announcements were not misleading or false and to release price-sensitive information quickly enough.

The breaches concerned the company's oil wells in the Kallirachi project in the North Aegean Sea.

Regal said it was disappointed with the fine but pleased the matter was closed.

"At no point has it been suggested that any of the current management team have conducted their responsibilities in anything other than a proper and professional manner," it said in a statement.

Regal is listed on the LSE's Alternative Investment Market (Aim).

Record fine

The breaches relate to the company's claim that its Kallirachi project could hold up to 227 million barrels of oil. In May 2005, the company was forced to admit that the well was not commercially viable, and yielded just 30 barrels a day.

The LSE said Regal was slow in telling investors the bad news.

"The number, nature and duration of the breaches demonstrate a systemic pattern of conduct evidencing a reckless disregard for the Aim rules by Regal," said the LSE.

Nick Bayley, head of regulation at the exchange, added: "Today's public censure and fine closes an exceptional case in Aim's history. It is unprecedented in terms of the seriousness of the rule breaches involved and the resultant market impact."

"Today's action demonstrates that the exchange takes the accurate and timely disclosure of price sensitive information by quoted companies very seriously."

He added that the fine handed down to Regal was the biggest fine in Aim's history.



Print Sponsor


SEE ALSO
Shares hit as oil firm runs dry
18 May 05 |  Business
BP fined $87m for Texas explosion
30 Oct 09 |  Business
EU cartel fine for plastics firms
11 Nov 09 |  Business

RELATED INTERNET LINKS
The BBC is not responsible for the content of external internet sites


FEATURES, VIEWS, ANALYSIS
Has China's housing bubble burst?
How the world's oldest clove tree defied an empire
Why Royal Ballet principal Sergei Polunin quit

BBC iD

Sign in

BBC navigation

Copyright © 2019 BBC. The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.

Americas Africa Europe Middle East South Asia Asia Pacific