Oil and Gas Eye Q1 2013
Risers in Q1 increase reserves potential
In Q1 37% of AIM oil and gas companies saw share price gains, mainly because of exploration success and upward revisions to reserves estimates. Anticipation of near-term production increases was also a key growth factor.
Bowleven’s share price rose 46% following the announcement of exploration success in Cameroon. In February it announced results of the IM-5 well in the Etinde permit, including the potentially significant Intra Isongo discovery. In March, following assessment of IM-5 well data, it announced a substantial increase to the Isongo Marine field in-place hydrocarbon volumes.
In March, Bahamas Petroleum said the Government of The Bahamas will defer a referendum on future oil development in the region until after the exploration drilling phase. Bahamas is holding discussions with a number of potential farm-in partners and the decision to allow exploration provides clarity for these potential investors. Its share price ended Q1 up 29%.
Kea Petroleum announced the discovery of more oil at the Puka field in New Zealand. It has since started drilling at its 100% owned Mauku 1 well, which if successful, could prove transformational. It is holding discussions with potential farm-in partners, but said it may not be able to finish negotiations within project time constraints. Its share price rose 28% over Q1.
In January, Bridge Energy announced first oil production from the UK North Sea’s Cormorant East field. Bridge has a 4% interest in the field, which achieved first oil just 85 days after discovery. In February, it announced a significant increase in the range of estimated recoverable resources in the Asha discovery in the Norwegian North Sea. Its share price ended Q1 up 25%.
In January, Independent Resources said it is considering strategic alternatives to improve shareholder value, which may include farm-outs, selling assets and a merger or sale of the company. Its share price ended Q1 up 24%.
Just one company, The Parkmead Group, entered the index at the end of Q1, reflecting limited movement over the quarter.
Performance of Oil and Gas eye index and oil price over Q1 2013
Source: Ernst & Young, Thomson Datastream