Oil and Gas Eye Q2 2014

Secondary fundraising rebounds in Q2

  • Share

Oil and gas companies raised total secondary funds of £254.8 million in Q2, the largest amount raised in a single quarter since Q4 2011.

However, this headline figure masks the divergence in capital availability across the junior oil and gas sector.
Two companies accounted for almost half these funds, and three-quarters of companies raised nothing.

The secondary fundraising environment across the wider AIM market was positive in Q2, with the £1.3 billion raised the highest quarterly total for three years.


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

Q2 2014

0.0

254.8

0.0

72.1

327.0

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 successfully raising funds in Q2 included:

  • Faroe Petroleum raised approximately £65 million through a placing in June. Proceeds will be used to accelerate exploration, appraisal and development activities. The size of the placing was increased from the base size of around £45 million, and Faroe intends to apply the further funds to pursue additional production acquisitions and accelerate the conversion of 2C resources into 2P reserves.
  • Petroceltic International successfully raised around £59.7 million via a May placing. The funds will allow it to pursue growth opportunities across its existing portfolio and new ventures. They will also be used as bridge funding pending receipt from Sonatrach of the proceeds from Petroceltic’s farm-out of a stake in the Isarene PSC in Algeria.
  • Tower Resources raised gross proceeds of £19.3 million through a placing in April. As a result, it was fully financed for the remaining firm well costs to drill the Welwitschia-1 well offshore Namibia. The proceeds will also be used for costs related to the proposed acquisition of Rift Petroleum and the conditional farm-in to Block 2B in Kenya.
  • Oilfield services provider KBC Advanced Technologies raised £24 million via a placing. The proceeds will allow it to take advantage of opportunities in high growth markets through organic and inorganic investment in their technology offering, the further development of its market reach, and an enhanced ability to undertake larger projects.
  • In June, Rose Petroleum raised £6.5 million via a placing. The placing’s net proceeds will be used to start development of its Mancos and Paradox assets in eastern Utah, which it expects to start producing during the first half of next year.