Oil and Gas Eye Q3 2013
Ins and outs of the AIM oil and gas universe
The AIM oil and gas universe (including oilfield services companies) stood 116 strong at the end of Q3, compared to 115 in Q2.
Three new oil and gas companies joined AIM. This is a positive development, but the combined £4.6 million of funds raised suggests market conditions remain tough.
Independent Oil & Gas raised £2 million through its September IPO. The UK-focused company’s strategy is to target assets near existing infrastructure. These assets may be considered marginal by the major oil companies, but are potentially high margin developments that could be material for a smaller independent company.
Shares in Frontier Resources were admitted to trading on AIM following the its successful IPO, which raised £1.8 million. Its focus is on the Middle East and Southern Africa, and it has three onshore exploration projects in Oman, Zambia and Namibia.
Union Jack also joined AIM at the end of July after raising £0.8 million through an IPO. Its strategy is to build a conventional production and exploration company, primarily focused onshore UK.
Shares in Lochard Energy were cancelled from trading on AIM in July following the completion of its takeover by The Parkmead Group.
In July Resaca Exploitation requested the cancellation of its shares from trading on AIM, and it has started a voluntary liquidation process to wind up the company.
There were 17 successful IPOs across other sectors on London’s junior market in Q3. Funds raised from new issues by all companies listed on AIM were £273.9 million, 30% higher than Q2’s total.