Embattled Regal boss quits

FRANK TIMIS, the controversial boss of Regal Petroleum, has quit. After an emergency board meeting of the oil and gas explorer today, it is understood Timis was given an ultimatum by the two non-executives: 'You go or we do.'

At that meeting Timis, who founded the company nine years ago and is its executive chairman, is believed to have been told his position at the company had become untenable in the eyes of major shareholders and that his resignation was the last available avenue if Regal was to have a future.

The news sent the shares soaring more than 10% to 74½p by mid-afternoon.

The putsch is believed to have been orchestrated by Bill Humphries, a veteran of resources companies listed on London's secondary Aim market and said to be a 'tough cookie' with 30 years' experience of the Australian mining industry.

It was thought Humphries as Regal's senior non-executive - the other part-time director is lawyer Lord St John of Bletso - would step up to the chairmanship.

But the statement announcing Timis's departure indicated the company is looking elsewhere for a new chairman alongside other posts: chief executive, exploration director (the last one quit last month) as well as further non-executives to bolster the board.

The departure of the colourful Timis is the latest twist in an extraordinary few weeks for the company which, until earlier this year, had been one of the stellar stocks of the most excitable sector on equity markets.

Just last weekend it was reported that Timis, 41, who has previous convictions for heroin possession, was under investigation in his native Romania. That came after Regal last month finally admitted a supposed oil find off the Greek coast was worthless, confirming informed speculation in the City previously revealed by the Evening Standard.

That speculation and eventual confirmation saw Regal shares plunge 85%, wiping hundreds of millions of pounds off the company's value.

Adding to the controversy, Regal had in April raised £45m in a share placing at 300p. After news of Timis's exit, the shares jumped as much as 15% before settling at 71¼p, up 3¾p.

A spokesman for Regal said: 'Frank Timis has taken a lot of stick in the media and the stick was going to continue as long as he was there. That was detracting from the potential of the company and his resignation is in the best interests of shareholders.'

One of the largest is Timis himself with 8%, but institutional investors have already voted with their feet. Merrill Lynch sold one million shares today, mirroring recent moves by Fidelity. Goldman Sachs and Morgan Stanley have also sold up.

The spokesman admitted recruiting directors could be difficult but added: 'The attacks on the company have been not on its assets but on one uneconomic well. Its interests in the Ukraine are profitable and it has just struck gas in Romania.'