Oil and Gas Eye
Oil and Gas Eye provides quarterly analysis and commentary on activity driving the AIM market, and examines movements of Ernst & Young's Oil and Gas Eye index, which monitors the performance of AIM oil and gas companies on a weekly basis.
Q3 2012: At least it hasn't got any worse
- The Oil and Gas Eye index posted a modest 5% gain in Q3, marginally outperforming the wider AIM market and it's FTSE 350 oil and gas peers.
- Capital is on the agenda of every board in the oil and gas sector. For some it's about raising it, for others about preserving or optimizing current capital, and others are blessed with deciding how to invest available funds. The breadth of expertise and focus companies apply to their capital agenda is a critical success factor.
- A little over half the AIM oil and gas universe posted share price gains in Q3. Those showing progress on their balance sheet (improving asset value) and cash flows (production or new funding) moved into positive territory, as did some beneficiaries of corporate takeovers.
- With less than £50m of secondary finance raised in Q3, funding conditions remained challenging, especially for development projects. Nevertheless, there was a significant glimmer of hope with West Africa-focused Eland Oil & Gas raising £118m with the largest AIM IPO in three years. Two further oil and gas companies joined AIM in Q3, albeit without raising funds, reflecting the market's continued attraction. This is the first time in six years IPO fund-raising has outpaced secondary financing –-probably mixed news for incumbents.
