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Value of Upstream Independents falls


30 July 2012:  Australia’s Top 25 Oil and Gas Upstream Independents experienced a decline in value during the second quarter of 2012, with their combined market capitalisation dropping by 14% during that period, according to the Upstream Independents League Table released today by professional services firm Deloitte.

Deloitte’s National Oil and Gas Leader, Stephen Reid, said a 25% decrease in the Tapis oil benchmark during the second quarter together with a stubbornly strong Australian dollar had contributed to the slump in value.

“We saw a strong rebound by the upstream independents during the first quarter but the combined effect of a strong dollar and a decline in the Tapis price has all but wiped out those earlier gains,” he said.

“The second quarter was a challenging one for the upstream operators with both industry and investors expressing concerns over the cost of operating in Australia,” Mr Reid said.

“Not surprisingly, this decline was largely driven by the fortunes of the top three companies, Woodside, Origin and Santos, whose combined value accounts for almost three quarters of the Top 25’s total market capitalisation, and all three experienced cost overruns in the first half of the year that have no doubt contributed to the drop in value last quarter.”

Some of the significant moves included:

  • Pancontinental Oil & Gas entered the top 25, rising from 30 to 19 during the quarter with its market capitalisation increasing from $181m to $197m off the back of $23m in capital raisings completed during the quarter. The capital was raised to fund exploration programmes of Pancontinental’s oil and gas interests in offshore and onshore Kenya
  • Cooper Energy also entered the top 25, rising from 27 to 24 during the quarter, facilitated by the issue of 34.5 million shares to Somerton Energy Limited shareholders as part of Cooper Energy’s off market takeover of the company
  • Buru Energy consolidated its position within the top 25, increasing its rank from 10 to 8 and was one of the few companies to post an increase in market capitalisation over the quarter. The increase in market capitalisation (of approximately $34m) was driven by an institutional placement of $50m for the purpose of furthering exploration work within the Canning Basin
  • New Zealand Oil & Gas rose 5 places  from 20 to 15 off the back of positive announcements in June, including the potential for a dividend of 6 cents (NZ) per share to be paid from 2012 profits and a 13% increase in reserves in the Kupe oil and gas field located offshore Taranaki coast
  • Samson Oil and Gas recorded the biggest fall in ranking, falling from 25 to 39 off the back of the company announcing mixed results from exploration activities conducted at its Hawk Springs project in Wyoming and its Roosevelt project in Montana
  • Dart Energy Limited also moved out of the Top 25, moving down to 26 from 21 last quarter.

Last Updated: 


Stephen Reid
Deloitte Australia
Job Title:
Partner, National Mining Leader
Tel: +61 3 9671 7506
Eileen Kerrigan
Job Title:
Corporate Affairs & Communications
Tel: +61 3 9671 6910, Mobile: 0412 499 683




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