The company’s quarterly AIM Oil & Gas index, published on Sunday, showed that the value of AIM-listed oil and gas outfits had plunged 11% in the second quarter of 2006.
But at the same time, seven of the top 20 companies experienced a share price rise, led by Sydney-based Roc Oil, which saw its shares shoot up 29%. Its market capitalisation increased from £288 million (almost $A715 million) to £373 million in the quarter.
Roc first started trading on AIM in September 2004 to raise funds for its UK and Mauritanian assets.
Meanwhile, Roc Oil’s Chinguetti partner, Hardman Resources, saw its market cap decrease 16% from £585 million to £501 million in the period.
Ernst & Young oil and gas partner Alec Carstairs, who helped put the report together, said: “What is increasingly apparent is that the fortunes of the oil and gas juniors – unlike the mining sector – do not perfectly correlate to current commodity prices.
“Instead, value is being driven by company-specific factors, such as management teams, exploration outcomes and transaction successes.”
The sector also experienced extreme volatility. More than half of the firms had a 40% difference between the low point and high point in their share price over the period. Carstairs said this could be explained in part by increased interest in the sector from hedge funds.
