AIM oil and gas companies suffer

Oil and gas companies listed on the Alternative Investment Market (AIM) have
suffered their worst quarter since 2004, according to an Ernst and Young report
released today.

In the three months to the end of September, AIM-listed companies in the
sector lost 44% of their value, the worst drop since Ernst and Young’s Oil
& Gas Eye Index began in 2004.

‘The turbulent landscape meant that all junior oil and gas companies,
regardless of size and development stage, saw their share prices tumble,’ said
Alec Carstairs, an oil and gas partner at Ernst and Young.

He also warned that access to equity was drying up for these companies, which
could pose an even greater danger than the falling crude price, which is driving
the decline in these firms’ share prices.

‘The situation for many oil and gas juniors is nearing critical,” he said. ”
The doors to equity and capital are fast closing and the importance of cash
cannot be underestimated. A number of companies are already beginning to warn of
uncertainty as to their ability to continue as a going concern.’

Further Reading:

story in The Scotsman

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