Regal ponders LSE listing

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The Independent Online

Regal Petroleum, the controversial Ukraine-focused oil and gas explorer, is mulling a move to the main list of the London Stock Exchange (LSE).

With a market capitalisation of approaching £300m, Regal is one of the biggest players on the Alternative Investment Market, the junior stock exchange. A move to the main board would offer access to more funds, though regulation would be tighter.

Regal has been in dispute with the LSE since 2005 over a failed Greek oil discovery. The company, then under a different management team, raised £45m through a share issue, but shortly after announced that the project would not work financially leading to allegations that it had exaggerated its Greek prospects.

A market source said: "Regal has enough trading history to justify a promotion to the main list, but I'm not sure the unresolved problems in Greece would make them too popular with the LSE."

Regal has been quiet on the potential promotion since speculation first began in the summer of last year.