Ben Richardson, CEO at SulNOx, confident they can cost-effectively decarbonise commercial shipping. Watch the video here.
My tweet was professional and friendly ;), but at the end of the day it’s fine. ZEN is in a better position following the debt reduction and C37 flow rate and the fundamentals are still there. Need to just hold nerve during the downturn in sp.
We have no reason to believe C30 flow rates won’t be soon and at the end of the day the C37 flow rate wasn’t bad news. It’s been an encouraging week with the debt reduction. Total over reaction on the market due to people on here ramping beforehand.
Executives say the moves indicate the higher level of investor and analyst receptivity in London relative to North America towards companies with valuations below $500m or with offshore assets located in emerging markets.
“The UK market has a record of investing in smaller market cap companies,” said Henry Fitzgerald-O’Connor, managing director at Canaccord Genuity.
The gaze of North American investors was instead fixed on US shale and domestic growth industries such as tech and cannabis in Canada, analysts said, whereas fund managers in London are used to investing in companies that operate in higher risk markets.
“Being an investor in the UK doesn’t mean that you just invest in the North Sea but also look internationally,” added Mr Fitzgerald-O’Connor.
An increasing number of North American small-cap oil and gas companies are listing in London, believing investor interest in niche energy stocks is significantly higher than New York or Toronto.
Vaalco Energy, a small Houston-based oil producer with assets in central Africa, became the latest to join the London Stock Exchange last week in a secondary listing priced at 172.5p for a valuation close to £100m.
It produces just 3,600 barrels of oil equivalent per day from a single asset in Gabon but hopes to grow five times in as many years by raising capital on the LSE for acquisitions in Africa.
Diversified Gas & Oil, another conventional fossil fuel producer focused on the US, said earlier this month that it would upgrade to the LSE’s main market after two years of rapid growth on Aim, London’s junior market.
The pair and others have faced an uphill struggle with North American investors who have turned negative on the wider energy sector after being burnt by the performance of shale-focused producers.
Cary Bounds, Vaalco chief executive, said the London listing would help the company broaden its investor base and give it access to capital markets and analysts’ coverage.
“There are investors in London with appetite for smaller cap African E&Ps,” Mr Bounds said. “Analysts in North America have an educated understanding of shale play but they struggle with us. London analysts understand how to value our business.”
Diversified Gas & Oil has been something of a role model for North American operators that turn to London. It has raised $740m since joining Aim in February 2017, making acquisitions worth nearly $1.5bn as its market capitalisation swelled from $86m to about $875m.
It is also set to become one of the largest independent oil producers on the FTSE with more than 90,000 barrels of oil equivalent output per day, competing to overtake UK-listed heavyweights Tullow Oil and Premier Oil.
“In the US, attorneys get calls constantly saying how can we go do what Diversified did in London,” said Rusty Huston, Diversified’s chief executive.
Being an investor in the UK doesn’t mean that you just invest in the North Sea but also look internationally
Henry Fitzgerald-O’Connor, managing director at Canaccord Genuity
Vaalco and Diversified are not isolated cases. More than 40 per cent of new London listings in the energy sector since 2014 have come from North America with an aggregated market capitalisation of more than £4bn.
Valeura Energy, a Toronto-listed natural gas producer, joined the LSE in April to fund drilling in Turkey, while New York-listed Kosmos Energy is a sizeable offshore oil producer that floated in London in 2017. Valeura’s share price has risen by almost a third to reach 195p, while shares in Kosmos have recovered to about 550p after tumbling as low as 312p when oil prices fell near the end of 2018.
https://www.ft.com/content/bf4d8a94-ddf6-11e9-9743-db5a370481bc
Hi AGEOS.
Thanks for posting this. I’m a relatively new investor in OMI and have seen some of your historical posts. I would like to please ask a question if I may.
In your post you say ‘The other half of ANZA, including the extensive La Cejita and most of Jesuitas targets, is subject to ongoing open application, so Orosur does not as yet have title to half of the ANZA region’.
I’ve looked at the pages you reference in the Annual Information Form and my question is does OMI have exclusivity in this ‘application’ or is there a risk that competing companies could make an application and acquire these titles?
Thanks in advance.
Thanks Bhargav. I was reading a post from a month or so ago from AEGOS which you were involved in relating to OMI not having acquired the rights/concessions to all they need at Anza. What is your take on this. Apologies for all the questions!!