In its Oil and Gas Eye Index report, EY elaborates key AIM risers and fallers:
Risers
According to EY, in Q1 34% of companies in the AIM oil and gas universe recorded share price gains, with strategic agreements, farm-out deals and positive operation updates the main drivers.
- SacOil Holdings’ share price rose 188%. In March, the company announced that, with The Public Investment Corporation, it had entered into a Memorandum of Understanding (MoU) with an entity managing investment portfolios and shares on behalf of the government of Mozambique to investigate opportunities relating to the future distribution of gas in Southern Africa.
- In February, Egdon resources and its partners announced that they had completed a farm out agreement with Total in respect of UK onshore exploration and development licenses PEDL139 and PEDL140 in Lincolnshire. The agreement marked the entry of the first oil major into UK shale gas exploration. In January, Egdon Resources and its partner also entered into an opt-in agreement with Total for license PEDL209, also in Lincolnshire. Egdon’s share price ended up 104%.
- In March, Madagascar Oil released an update on the ongoing Steam Flood Pilot at the Tsimoro oil field in Madagascar. It said that recent results from the pilot point to the positive response of the reservoir to thermal recovery techniques. Its share price rose 46% over Q1.
- Empyrean Energy said it has 119 wells on its Sugarloaf project in the Eagle Ford Shale. Marathon Oil aims to drill 100 – 110 wells in 2014. The companies share price ended Q1 up 43%.
- In January, Europa Oil & Gas announced that phase 1 of the PEDL 181 license onshore UK has been extended by a year. This will enable it to drill the Kiln Lane-1 prospect in the second half of 2014. Its share price rose 35% over Q1.
Four companies entered the Oil and Gas Eye Index at the end of Q1: Hurricane Energy, Tower Resources, President Energy and Circle Oil.
Fallers
66% of companies in the AIM oil and gas universe registered a share price fall, according to EY. This reflects disappointing drilling results, media speculations round key projects and the failure of proposed strategic deals.
- Max Petroleum’s share price fell 61%. In January, it said the SAGW-11 appraisal well in Kazakhstan had not found sufficient hydrocarbons to be commercial.
- In March, Clontarf Energy, which holds 60% interest in the Ghana Tano 2A Block, commented on media reports regarding ratification of the petroleum agreement of the block, saying that the reports suggested ratification of a rival application may overlap a portion of the Block. In early April, Clontarf said the High Court of Ghana had granted its application for an interlocutory injunction and an interim order protecting its property rights. Nevertheless, the company’s share price ended Q1 down 50%.
- Lansdowne Oil & gas’ share price fell 37% over Q1. In January, it pointed to an announcement made by Providence Resources regarding press speculation that farm-out discussions regarding Ireland’s Barryroe oilfield may not be progressing to plan. Providence said there had been no material change to the Barryroe farm-out’s outlook since the update provided in December 2013. Providence’s share price dropped 17% in Q1.
- InfraStrata announced that BP Gas Marketing Limited has decided to relinquish its option to acquire 50.495% of the shares of the Islandmagee gas storage project in Northern Island. Its share price ended Q1 down 35%.
- Tangiers Petroleum’s share price fell 26% in Q1. In March, it confirmed that the minimum acceptance conditions for its recommended off-market takeover bid for Jacka Resources were not met by the end of the offer period, and that offers had now lapsed.
Four companies exited the Oil and Gas Eye Index at the end of Q1: Providence Resources, Coastal Energy, GeoPark Holdings and Gulf Keystone Petroleum.
Adapted from a report by Emma McAleavey.