Regal Petroleum Plc, a UK explorer in central Europe and Africa, was fined a record 600,000 pounds ($1 million) by London’s Alternative Investment Market for misleading investors about a Greek discovery in 2005.
Regal fell as much as 2.4 percent in London trading after AIM’s Disciplinary Committee said the company was overoptimistic about the Kallirachi prospect in Greece and took longer than it should have to inform the market that the two wells were being abandoned.
“Regal failed to take reasonable care to ensure that the information it notified during the relevant period regarding the Kallirachi Prospect was not misleading, false or deceptive and did not omit any information,” the exchange said. The probe related to statements put out by the company concerning the Greek wells between June 2003 and May 2005.
London-based Regal said it was “disappointed” by the ruling, though it was pleased to put this “historic episode” behind it. It emphasized that no member of its current management was accused of any wrongdoing. The fine is the largest since AIM was founded in 1995.
(KATHIMERINI, 11/18/2009)