Regal Petroleum , the Aimlisted oil and gas group focused on Ukraine, added 4.2 per cent to 69p on the back of a very bullish note from Merrill Lynch.

The broker reckons the shares are a "buy" worth 130p given the strategic importance of the Ukrainian domestic gas market and the prospect of a joint venture or bid for the company. But the note also said Regal, which has raised $100m by a placing at 61p through Merrill, might need to raise a further $50m.