One of the biggest share-ramping scandals of recent times has ended in a record £600,000 fine for Regal Petroleum and public censure by the Stock Exchange.

In question was Regal's conduct for the two years leading up to the spring of 2005. At the time it was advised by broker Evolution and run by its founder Frank Timis who is now searching for diamonds in Sierra Leone.

The penalties relate to the ill-fated Kallirachi oil prospect in the Aegean Sea off the coast of Greece. Hopes for the prospect saw Regal's stock soar to more than £5 a share in a frenzy of buying before collapsing when it emerged the wells were dry.

In its ruling today, the disciplinary committee of the junior AIM market said Regal's statements on Kallirachi were “misleading”, “not accurate” and “consistently over optimistic”.

Regal issued a statement today to say that none of its present management had been involved in the affair. “While disappointed at the outcome, Regal is nonetheless pleased to divorce the company from this historic episode,” it said.