Oil and Gas Eye Q4 2013

Secondary fundraising hits highest level in two years

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Secondary fund raising by AIM-listed oil and gas companies rebounded sharply in Q4, with the £212.0 million raised the largest quarterly total in two years.

This helped boost total secondary funds raised by oil and gas companies in 2013 to £477.3 million – 2% higher than in 2012. However, just 17% of companies successfully raised funds, reflecting an ongoing capital imbalance.

The secondary fundraising environment across the wider AIM market improved markedly, with the £1.2 billion raised 150% higher than Q3’s total. At £2.8 billion, 2013’s total raised was 16% higher than 2012’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

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 Q4 included:

  • Lekoil raised approximately £62.3 million through a November placing. Proceeds will fund completion of drilling and testing of the Ogo-1 well, Ogo-1 sidetrack and future development of the OML113 licence offshore Nigeria, and enable full repayment of the loan facility Lekoil entered into with Afren.

  • Wentworth Resources raised gross proceeds of £24.7 million via a private placement of shares in October, and an additional £3.7 million via a placing in November. Funds will enable it to participate as a working interest partner in a high impact exploration drilling programme in Mozambique, and fund on-going exploration work over the Mnazi Bay Concession in Tanzania.

  • Oilfield services company Thalassa Holdings raised £18.1 million via an October placing. Proceeds will provide additional capital to finance continued growth, and the placing will broaden the company’s institutional shareholder base.

  • Bowleven raised gross proceeds of £13.3 million through a November placing. It intends to use proceeds for front end engineering and design (FEED) activities to allow progress towards a final investment decision on its Etinde development project in Cameroon.

  • In November, Serica Energy successfully raised £12.1 million via a placing. Net proceeds will mainly be used to fund a proposed work programme, and expand Serica's portfolio in areas in which it has early entrant advantage and opportunities to use its proprietary data and knowledge.