Oil and Gas Eye Q1 2013
Secondary fundraising recovers in Q1
Oil and Gas Eye
In early 2013, greater stability in equity markets and a return of selective risk appetite helped fundraising by AIM-listed oil and gas companies.
Secondary fundraising by oil and gas companies on AIM in Q1 totalled £173.9 million, 48% higher than Q4 2012’s total, and the highest amount raised in a single quarter in over a year.
In contrast, secondary fundraising across the wider AIM market was down in Q1. The £503.5 million raised was 16% less than Q4 2012’s total, and 47% lower than Q1 2012’s.
On the main market, Ophir Energy raised £553.4 million through a March placing and rights issue. Proceeds will add significant value across its portfolio through a high-impact pan-African drilling program, commercialization of its Tanzania gas assets, and strategic portfolio additions.
Oil and gas funds raised on AIM and the Main Market (£ million)
|
| AIM | Main Market | AIM & Main Market | ||
|
| New Issues | Further Issues | New Issues | Further Issues | Total funds raised |
| Q1 2013 | 107.4 | 173.9 | 0.0 | 553.4 | 834.7 |
| 2012 Total | 177.6 | 467.0 | 162.9 | 288.0 | 1,095.4 |
| Q4 2012 | 0.0 | 117.8 | 0.0 | 0.0 | 117.8 |
| Q3 2012 | 118.0 | 48.9 | 0.0 | 0.0 | 166.9 |
| Q2 2012 | 55.4 | 115.4 | 0.0 | 281.8 | 452.6 |
| Q1 2012 | 4.2 | 184.9 | 162.9 | 6.1 | 358.1 |
| 2011 Total | 223.1 | 1,013.1 | 234.7 | 457.0 | 1,927.9 |
| Q4 2011 | 1.2 | 265.8 | 0.0 | 0.0 | 267.0 |
| Q3 2011 | 93.4 | 168.7 | 234.7 | 203.9 | 700.7 |
| Q2 2011 | 65.5 | 268.6 | 0.0 | 233.1 | 567.3 |
| Q1 2011 | 63.0 | 309.9 | 0.0 | 20.0 | 392.9 |
| 2010 Total | 131.9 | 1,902.7 | 1,271.7 | 1,092.9 | 4,399.2 |
| Q4 2010 | 103.9 | 927.1 | 0.0 | 6.8 | 1,037.8 |
| Q3 2010 | 22.0 | 326.2 | 0.0 | 0.0 | 348.2 |
| Q2 2010 | 0.0 | 467.0 | 1,271.7 | 21.3 | 1,760.1 |
| Q1 2010 | 6.0 | 182.3 | 0.0 | 1,064.8 | 1,253.1 |
Note: New Issues include placings, introductions, transfers and re-admissions (money-raising and non-money raising)
Source: London Stock Exchange
AIM-listed oil and gas companies successfully raising funds in Q1 included:
- Madagascar Oil raised £49.5 million through a placing. Funds will be used to complete the Tsimiroro Steam Flood Pilot and start evaluating the Tsimiroro heavy oil field’s commercial potential using thermal recovery, and the conventional oil and gas potential on its exploration blocks.
- In January, IGas Energy raised £23.1 million via a placing. It will use proceeds to appraise its unconventional resources, add value ahead of any farm-out, and complete acquisition of PR Singleton from Providence Resources.
- Victoria Oil & Gas raised £23.4 million via an initial and secondary placing, and will use proceeds to execute its downstream strategy at the Logbaba Gas and Condensate Project in Cameroon. This, and completion of a previously announced reserve-based lending facility, leave it fully funded to meet development and production plans.
- In January, The Parkmead Group raised gross proceeds of £15.9 million via a placing. Funds will finance its capital commitments in the UK North Sea, evaluation of additional drilling potential on its onshore Netherlands production and development portfolio, and potential corporate and asset opportunities.
- Solo Oil raised £3.5 million via three placings. It will use funds to strengthen its balance sheet, potentially increase ownership interest in existing projects, and investigate new oil and gas investment opportunities.