Year to forget for many AIM oil and gas investors
Looking at the table above of the share prices for many popular AIM oil and gas shares at the beginning of 2012 versus where they are now is, on the whole, a pretty grim picture… For all the companies listed above, the average return was a disapointing loss of 28%.
With some, such as Chariot Oil and Gas and Borders, around three quarters of their value was lost over the last 12 months, similarly with Range Resources/Red Emperor not far behind. The destruction of value was predominantly as a result of a series of drilling set backs on their respective acreages. Even companies like Kurdistan focused Gulf Keystone have had a subdued year despite upgrading their oil resources significantly. The farm out deal for Rockhopper with Premier Oil to develop the Sea Lion find with its extended period for first oil, proved highly underwhelming for holders too.
Most of the stocks listed above are heavily private investor owned and have an active following on most of the popular bulletin boards. With such a troubled performance, its unlikely many amateur traders in the sector are celebrating a hugely succesful 2012. For those betting on wild cat drilling offshore Falklands, Puntland and Africa it’s certainly been a rollercoaster of a time, largely ending in plenty of disappointments.
Lets hope for better sentiment and better news for AIM oilies in 2013…..
Contrarian Investor UK
Well we all know about the extra discovery on the current appraisal drill bowleven and that chariot is in line for another pop and Border and Southern will merge with falklands oil & gas so for some of those above 2013 start should be a better story.