Oil and Gas Eye Q1 2014

Ins and outs of the AIM oil and gas universe

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The AIM oil and gas universe (including oilfield services companies) stood 112 strong at the end of Q1, compared to 111 in the previous quarter.

Coastal Energy exited the AIM universe in January following the completion of its merger with Condor Acquisition, a newly incorporated entity controlled by Spanish company CEPSA in which Strategic Resources is an investor.

GeoPark’s shares were cancelled from trading on AIM in February following its successful listing on the New York Stock Exchange. GeoPark said the listing would facilitate access to US public equity markets and provide additional capital and financial flexibility.

In late March Gulf Keystone Petroleum transitioned from AIM to the Main Market of the London Stock Exchange.

The suspension from trading in Gasol shares on AIM was lifted in February after the company said its proposed acquisition of Energie de Côte d'Ivoire S.A. would not proceed. In December, it said it had reached a conditional agreement to buy a 12% non-operating interest in Block CI-27 through the acquisition of 100% of the issued share capital of Energie de Côte d'Ivoire S.A. However, the current partners in the Block have elected to exercise their pre-emption rights.

In September 2013, AIM-listed Leyshon Resources announced its intention to separate its energy and minerals businesses through the demerger of its energy assets, which were held through a wholly owned subsidiary. The demerger was completed in January and Leyshon Energy’s shares were admitted to trading on AIM. It will focus on acquisition led growth and advancing the Zijinshan gas project in China.

There were two oil and gas IPOs on AIM in Q1. UK focused Hurricane Energy successfully raised £18 million from its February IPO. Its strategy is to discover, appraise and develop oil resources in naturally fractured basement reservoirs, with a regional focus west of the Shetlands.

Mosman Oil and Gas, which focuses on exploration and development in New Zealand and Australia, raised £1.5 million from its IPO in March. It will use the proceeds for the drilling programme at its Petroleum Creek Project in New Zealand and to advance native title negotiations at its Officer Basin Project in Australia.

There were 15 successful IPOs across other sectors on London’s junior market this quarter. £1.2 billion was raised from new issues by all companies listed on AIM, more than double Q4 2013’s total, and the highest total raised in a single quarter since Q4 2007.

On the Main Market, oilfield services company Gulf Marine Services raised almost £166 million from its IPO in March. It operates a fleet of nine self-propelled, self-elevated support vessel fleets globally, with a focus on the MENA region and Northwest Europe.

Quarterly trend of funds raised on AIM – oil and gas and all sectors

EY - Quarterly trend of funds raised on AIM - oil and gas and all sectors

Source: EYanalysis of AIM market statistics
New issues include IPOs, introductions, transfers and re-admissions (money and non-money raising