Business
M&A activity decimates size - but not strength - of oil and gas sector
M&A activity decimates size - but not strength - of oil and gas sector
About this update from Argenta Silver Corp
[{"type":"text","content":"\n\n\n\nDec. 14, 2009 (Canada NewsWire Group) -- CALGARY, Dec. 14 /CNW/ -- Mergers and acquisitions and a challenging operating environment have led to a dramatic decrease in the number of public junior and intermediate oil and natural gas companies operating in Western Canada, a survey released Monday shows.The number of conventional junior and intermediate oil and gas players has fallen 36 percent over the past four years to 77 in the third quarter of 2009. This compares with 121 in the third quarter of 2005, 111 in 2006 and 99 in 2007.This is just one of the findings in the latest iQ Report by Bryan Mills Iradesso, a national communications and research firm. The quarterly iQ Report tracks the performance of all junior and intermediate oil and gas companies and trusts that operate primarily in Western Canada and trade on the TSX and TSX Venture Exchange. The comparison, available free to investors at http://iq.bmir.com, defines juniors as companies that produce between 500 and 10,000 barrels of oil equivalent per day (boe/d) and intermediates as companies that produce between 10,000 and 100,000 boe/d. Bryan Mills Iradesso's latest report compares the results of 54 juniors and 23 intermediates for the third quarter of 2009. Select information is also provided on oil sands players, international operators and emerging producers.Peter Knapp, editor of the iQ Report and president of Bryan Mills Iradesso, said the junior and intermediate oil and gas sector is shrinking rapidly as companies continue to exit the industry through mergers and acquisitions while new entrants have been few and far between because of the challenging economic environment.\"The junior and intermediate companies that are continuing into 2010 may be fewer in number, but they are durable and dynamic,\" said Knapp. \"What doesn't kill you can make you stronger.\"Knapp said the quality of the remaining players is rising thanks to strong crude oil prices, improving natural gas prices and a round of recent equity financings that put balance sheets on firmer ground.In addition to tracking the number of oil and natural gas producers, the latest iQ Report reveals the following about the recent performance of the junior and intermediate energy sector:- The intermediate grouping showed median cash flow netbacks of $20.31per barrel of oil equivalent (boe) for the third...