Oil and Gas Eye Q1 2013

Resaca Exploitation’s price fell 55%. In March, it said ERG Resources had withdrawn its offer to buy a package of its US interests. Resaca is still discussing a way to reduce debts.

In February, San Leon Energy extended the timetable for opening of the data room for parties interested in a stake in its Durresi block in Albania. This is to allow more detailed technical evaluation and accommodate new entrants. Its share price ended Q1 down 30%.

In March, Regal Petroleum said flow rates from its SV-53 well in its wholly-owned Svyrydivske gas and condensate field in Ukraine had declined over the testing period and operating performance had not been stabilized. Its share price fell 28% over Q1.

In January, Lochard Energy said loan repayments and the settlement of a legal dispute with Senergy meant it was unable to solely fund a well at the Thunderball discovery. It said it could not meet UK Department of Energy & Climate Change requirements to continue as a North Sea operator until the end of 2013 or into 2014, and it expects the licence to lapse. It is continuing with the formal sale process of the company, and its share price ended Q1 down 24%.

In March, Trap Oil Group said the Magnolia exploration well in the North Sea, in which it has a 10% carried interest, had not found hydrocarbons and would be abandoned. It also said operations on the Scotney exploration prospect, in which it has a 12.5% carried interest, were 24 days behind schedule. Its share price ended Q1 down 18%.

In January, Leni Gas and Oil said it had launched legal proceedings against Mediterranean Oil & Gas over the sale of its 10% interest in Malta Area 4 Production Sharing Contract to Mediterranean. Its share price fell 15% over Q1, and Mediterranean’s fell 8%.

Gulfsands Petroleum was the only company to exit the index at the end of Q1.

Performance of Oil and Gas Eye index and FTSE 350 Oil and Gas Producers index since 2008

Source: Ernst & Young, Thomson Datastream