Regal confirms bid approach

City A.M. Reporter
Regal Petroleum said yesterday it was in the early stages of takeover talks with suitors, sending shares in the troubled oil explorer soaring.

The company, which has suffered a series of setbacks this year after disappointing well results in Ukraine, said it had received a number of approaches after it announced plans for a strategic review and the departure of its chief executive.

Shares in Regal, which have fallen 86 per cent since the beginning of the year, surged to gain 46 per cent yesterday to 18.3p, valuing the company at about £39.5m.

“The background is they’ve got more cash than the current market cap,” one analyst, who did not wish to be named, said of the firm’s potential appeal.