We have all felt the shrinking of the pool of capital available to small and mid cap oil and gas companies, be that due to the downturn in oil prices starting 2014, due to ESG concerns, or due to institutional investors having been burned in the past by E&P stocks.
Going forward, companies will have to focus on adopting creative business models, finding hidden opportunities and novel geological plays, and employing both a technically experienced and creative and energetic management team to ensure they can successfully deliver on both technical and financial goals, as well as investors expectations.
Furthermore, to gain trust from shareholders, management must deliver upon their promises; they must do what they say they will do, when they say they will do it. It is key that overheads are kept low, with capital being maximised to prove up reserves and resources. Employing the most capable, dedicated, and hard working personnel ensures only lean teams are needed. Companies must also keep in mind all stakeholders comprising the company’s eco-system. This includes the local population and governments, assets partners, neighbours, service providers, value chain participants. and the industry peers.
Hear more from Gil Holzman, speaking at the 2019 World Energy Capital Assembly and on the panel “Conquering New Frontiers – Unlocking the Value of New Ventures“.
Gil Holzman, President & Chief Executive Officer, Eco Atlantic Oil & Gas