Oil and Gas Eye Q1 2014

Secondary fundraising slows in Q1

  • Share

Oil and gas companies raised £110.3 million total secondary funds in Q1, 48% lower than the previous quarter and 37% lower than Q1 2013.

Once again, fund raising was limited to a small number of companies. Just 14% successfully raised funds in Q1. Three accounted for 79% of funds raised, and five raised less than £1 million. Equity capital market conditions for most small exploration companies remain challenging.

The secondary fundraising environment across the wider AIM market was steady this quarter. The £657.4 million raised was 44% lower than Q4 2013’s total, but 31% higher than Q1 2013’s.


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 2014

19.5

110.3

165.7

0.0

295.5

2013 Total

144.0

477.3

1.0

553.4

1.175.6

Q4 2013

0.0

212.0

0.0

0.0

212.0

Q3 2013

4.6

49.3

1.0

0.0

54.9

Q2 2013

32.0

42.1

0.0

0.0

74.1

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

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 that successfully raised funds in Q1 include:

  • The Parkmead Group raised approximately £40 million through a placing in January. Proceeds will be used to finance its ongoing capital commitments, accelerate growth through the development of its existing asset base, and fund further M&A activity.
  • President Energy successfully raised £31.2 million through a conditional placing and open offer in February. Proceeds will mainly be used to fund the three well drilling campaign on the Pirity block in Paraguay, scheduled for 2014. The fulfilment of its drilling obligations under the Pirity farm-out agreement will enable President to earn its full 59% working interest in the Pirity block.
  • Quadrise Fuels International raised gross proceeds of £10.7 million via a placing in March. Funds raised will be used to advance each of its current active programmes, help it pursue new projects, and strengthen its balance sheet.
  • In March Roxi Petroleum said a further $7 million (£4.3 million) had been called and received under a previously announced $40 million equity commitment with a director of the company. Proceeds will be used to continue its drilling campaign at Kazakhstan’s BNG contract area.
  • Europa Oil & Gas raised £4.0 million via a placing and open offer in January. Most of the proceeds will be invested in exploration activity across its portfolio. In particular, it will be able to drill and test the Kiln Lane-1 prospect onshore UK in the second half of this year.