Oil and Gas Eye Q3 2012
Ins and outs of the AIM oil and gas universe
Oil and Gas Eye
The AIM oil and gas universe (including oilfield services companies) stood 116 strong at the end of Q3, compared to 115 in Q2.
In September West Africa-focused explorer Eland Oil & Gas raised gross proceeds of £118m. Against a challenging backdrop, this was the largest IPO on AIM by any oil and gas company to date, and the largest on AIM in almost three years. Eland’s Nigerian joint venture company Elcrest completed the acquisition of 45% of Oil Mining Lease (OML) 40 in the Niger Delta from Royal Dutch Shell and its partners in September. Eland said it will look to buy and develop further underexplored upstream assets in Nigeria.
Shares in Edge Resources were admitted to trading on AIM after an introduction in July. It has producing assets in Western Canada and is listed on Canada’s TSX Venture Exchange. Edge believes the dual-listing will give it better access to sources of capital – vital to its focus on Saskatchewan’s capital intensive heavy oil reserves.
In September, shares in Oslo Axess-listed Bridge Energy ASA were admitted to trading on AIM. It also believes the listing will provide broader access to capital. The group was formed in 2010 with the businesses of Bridge Energy UK, then called Silverstone Energy, and Bridge Energy Norge. Bridge Energy has interests in two producing assets in the UK North Sea and a number of discoveries in the Norwegian and UK North Sea sectors. It intends to pursue production growth by developing its existing portfolio and strategic acquisitions.
Shares in New World Oil & Gas were readmitted to trading on AIM in July following its proposed change in status from an investing to an operating resource company, and its intention to start drilling in Belize.
The temporary suspension in trading of Xtract Energy’s shares in was lifted in August after it clarified its financial position.
Shares in three companies – Cove Energy, DEO Petroleum and Nautical Petroleum – were canceled from trading on AIM following completion of their takeovers.
There were nine IPOs across other sectors on London’s junior market, and funds raised from new issues by all companies listed on AIM were £243m in Q3 – 57% higher than in Q2, but still 10% lower than the amount raised in Q3 2011.
