MERGERS and acquisitions (M&A) activity is escalating among junior oil and gas companies as they attempt to diversify exploration risk and secure cash flows, according to EY’s latest quarterly report on the sector.
Barry Fraser, executive director at the accountancy firm’s Aberdeen practice, said: “Deal making is back on the agenda, with funding for development opportunities at the heart of acquisition and farm-out activity.”
One example, according to EY, is the proposed acquisition of Mediterranean Oil and Gas by fellow Aim-quoted company Rockhopper Exploration.
EY also highlights the consolidation occurring among companies in the UK’s fledgling shale gas industry.
Fraser said: “We believe that the development of shale gas in the UK could create a £33 billion investment opportunity for British businesses, so it’s all to play for.”
EY’s report, published today, comes alongside a warning that beyond the oil sector dealmaking has been scarce.
This article has been extracted from http://www.scotsman.com, please click on this link to read the article in full
Montash is a multi-award winning, global IT recruitment business. Specialising in permanent and contract positions across mid-senior appointments across a wide range of industry sectors and IT functions, including:
ERP, BI & Data, Information Security, IT Architecture & Strategy, Energy & Technologies, Demand IT and Business Engagement, Digital and E-commerce, Leadership Talent, Infrastructure and Service Delivery, Project and Programme Delivery.
Montash is headquartered in Old Street, London, in the heart of the technology hub. Montash has completed assignments in over 30 countries and has appointed technical professionals from board level to senior and mid management in permanent and contract roles.