Regal Petroleum...Trading at the wrong price.

Here we are, about to end 2005, after a year which has seen this company's fortunes and share price go all over the place.

With a range of 50p to £5, I don't think there have been many more volatile shares, and it remains a share with massive interest, whether people have a position or not.

As we leave the current trading year, the current situation remains as exciting and dangerous as ever.

A bull would say that Regal is the cheapest share on the LSE. If it keeps the rights to the Ukraine, finds some gas in Romania, finds anything in Egypt, sees the price of gas rise 4 fold in the Ukraine over the next year or two, then this share could easily trade at £10 and not be expensive.

A bear would say that they own nothing, and everything they have done has been a waste of time and money.

2006 will be the definitive year for Regal, in terms of its prospects as a serious player in the oil/gas producer/explorer markets, or its demise as another AIM listed sack of shit.

We all have our opinions on what we believe will happen, but none of us can say with any degree of certainty. What we can say with certainty is that 2006 will either see these shares rise exponentially, or fall to the low double digit numbers.

I am a strong believer.

I don't believe Timis would have added significantly since he resigned; I don't believe the new board would have joined, or the new staff, if they all didn't strongly believe that they had a good chance of joining a company that has a more than reasonable chance of making them a fortune.

It is the actions of these people that give me faith.

It is the actions of all the major shareholders that make me convinced that this share is set to become one of the stars of 2006, as it was in the early part of 2005.

With Timis adding since the licence dispute became known, instead of walking away and selling, I believe the future for Regal is set to turn very favourable in early 2006, and look forward to the new year with optimism.

All the best for next year.