Small-cap oil and gas companies saw a 125 per cent jump in value in 2009, though the improvements were offset by the whopping 66 per cent drop in the previous year, according to the Ernst & Young oil and gas index.
In the last quarter, the oil and gas sector of the Alternative Investment Market posted a 6 per cent rise, with 38 per cent of companies making a gain. Given the difficult market conditions, no new companies from the sector have listed on AIM in the last 12 months, although the value of secondary issues grew from £700m in 2008 to £1.1bn in 2009.
Alec Carstairs at Ernst & Young said: “Since the beginning of 2009 the index has posted gains in each successive quarter, contributing to a progressive reversal of the substantial declines seen in the closing months of 2008. Junior oil company stocks have benefited from the steady recovery in investor confidence and higher oil prices.”Reuse content