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Oil and Gas Upstream Independents back on track


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14 May 2012:  Australia’s Top 25 Oil and Gas Upstream Independents have experienced a welcome reversal of fortune during the first quarter of 2012, with nine of the top ten enjoying double or triple digit increases in their market capitalisation, 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 13% increase in the Tapis oil benchmark during the first quarter had contributed to the strong performance of a number of operators.

“A number of pressures conspired to increase project costs and extend timelines on some major projects during 2011, all of which contributed to a 14% drop in the combined market capitalisation of the top 25 Australian Upstream Independents last year.”

“This quarter, the Upstream Independents average increase in market capitalisation was approximately 20% compared to approximately 6% for the ASX Top 25 in the last quarter,” Mr Reid said.  “That’s a solid performance, but if we’re going to see the strength of these results continue, the industry will need to remain an attractive option for the foreign investment critical to sustain it going forward and, in the current environment.”

Significant moves in the Top 25 Upstream Independents include:

  • Maverick joined the Top 25 Upstream Independents, rising from 35 to 13 during the quarter, its market capitalisation increasing from $82.2m to $496.4m.  This increase is a result of a substantial reserves upgrade, with 1P reserves more than doubling to 28.1m barrels and 2P reserves increasing to 72.8m barrels. In addition the results from the company’s first test well on its Boiling Dome Field were positive, and the company completed its first well on Nash Dome.
  • Sundance Energy increased from 27 to 22 on the League Table, off the back of a rapid drilling program and increasing oil production.
  • New Standard Energy rose 11 places from 34 to 23. This significant increase appears to be driven by an improved outlook for its Canning Basin projects.
  • Buru entered the top ten after its market capitalisation more than doubled from $286.9m to $754.2m as it progresses its successful drilling program in the Canning Basin.
  • Rialto moved into the Top 25 from its previous position at number 32. A series of capital raisings, totalling approximately $70 million and the commencement of an appraisal/development at the Gazelle P-3 prospect in Côte d'Ivoire contributed to a robust performance during the quarter.

Departures from the Top 25 Upstream Independents included Cue Energy (26), Molopo Energy (31), Texon Petroleum (33) and Neon Energy (28).

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Contacts

Name:
Eileen Kerrigan
Company:
Deloitte
Job Title:
Corporate Affairs & Communications
Phone:
Tel: +61 3 9671 6910, Mobile: 0412 499 683
Email
ekerrigan@deloitte.com.au
Name:
Stephen Reid
Company:
Deloitte Australia
Job Title:
Partner, National Mining Leader
Phone:
Tel: +61 3 9671 7506
Email
stereid@deloitte.com.au

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