Oil and Gas Eye Q3 2013
Q3’s risers engaged in portfolio restructuring
54% of companies in the AIM oil and gas universe recorded share price gains in Q3, with strategic deals and portfolio restructuring the main growth drivers, and improved revenues from increased production also key.
Nighthawk Energy’s share price rose 78%. In July, it said it had acquired the remaining 25% working interest in its Smoky Hill and Jolly Ranch projects in Colorado. It also said it had achieved a company record level of oil production in August, with the start of production at two new wells in the Arikaree Creek oilfield contributing. The increased production levels helped Nighthawk achieve an operating profit before exceptional items of $1.3 million in the first half of 2013.
Ascent Resources completed its strategic review process in Q3. This involved disposing of non-core assets to focus resources and efforts on its Petišovci project in Slovenia. In July, it announced the sale of its wholly-owned Italian subsidiary, and in August said it had disposed of its interest in offshore licences in the Netherlands. Ascent’s share price ended Q3 up 41%.
Green Dragon Gas’ share price rose 40% over Q3. In July, it said the Chinese government had reissued it four exploration licences in China. In September, it said it had demerged its Greka Engineering subsidiary which serves the unconventional sector in China, following the demerger of the Greka Drilling subsidiary in 2011.
In September, President Energy said it had reached agreement in principle with the International Finance Corporation, a member of the World Bank group, for a proposed investment of up to £12.5 million focused on its 2014 Paraguay drilling programme.
Earlier in the quarter it said a seismic programme in Paraguay had showed the possibility of a far greater resource potential than initially estimated – possibly more than 500 million barrels of oil. Its share price ended Q3 up 39%.
Bridge Energy’s share price rose 37% over Q3. In September, Norwegian company Spike Exploration Holdings AS said it had made a recommended offer to buy Bridge that values it at approximately NOK 967 million (US$162 million). Spike intends to propose that application is filed to delist Bridge Energy’s shares from AIM.
Circle Oil was the only company to enter the Oil and Gas Eye index at the end of Q3, replacing Falcon Oil & Gas.
Performance of Oil and Gas eye index and oil price over Q3 2013
Source: EY, Thomson Datastream