Oil and Gas Eye Q3 2013
Main Market oil and gas movers
The share price of Main Market-listed oil and gas companies were buoyed by improved investor confidence this quarter.
Soco International was the best performer of the FTSE 350 oil and gas companies. In August, it announced the proposed return of approximately £133 million of cash to shareholders. The following month it said drill stem tests on its TGT-1DXST1 exploration well in Vietnam had exceeded expectations. Its share price rose 24% over Q3.
In July, Afren said it had bought an additional 23.3% interest in First Hydrocarbon Nigeria, which has a 45% interest in OML 26 onshore Nigeria. Its share price ended Q3 up 5%.
Cairn Energy also engaged in transaction activity in Africa in Q3 and its share price rose 2%. In August, it said it had entered an agreement to farm-in to a 35% non-operated interest in an exploration block offshore Mauritania, and added that ConocoPhillips was to acquire a 25% working interest from it in three contiguous blocks located offshore Senegal.
Tullow Oil’s share price fell 2% in Q3 following some disappointing drilling results in Mozambique and French Guiana. However, it also had some exploration success. In September, it announced an oil discovery in the Barents Sea offshore Norway, and, later in the month, it said the Ekales-1 wildcat in Northern Kenya had discovered oil.
Premier Oil and Ophir Energy also experienced disappointing drilling results in Q3. Premier’s share price fell 4%. In July, it announced that its 121-CV-1X exploration well offshore East Vietnam would be plugged and abandoned.
The same month, Ophir Energy said the Starfish-1 well in the Offshore Accra Contract Area in Ghana, the first in this licence, had been unsuccessful. Its share price ended Q3 down 7%.
Two new oil and gas companies joined the Main Market in Q3.
Shares in Xplorer were admitted to trading on the Main Market following an IPO in July that raised £1 million. Xplorer intends to buy an operating oil and gas exploration and production business that can act as the cornerstone for building a substantial group within the sector. Its focus will primarily be Asia, the Middle East and Latin America.
Caracal Energy also joined the Main Market in July following an introduction. It is focused on oil and gas exploration, development, and production activities in the Republic of Chad.
Share price movements of FTSE 350 Oil and Gas Producers over Q3 2013
Source: Thomson Reuters Datastream