
TY  - JOUR
A1  - Charters, John G. 
A1  - Epper, Mark S. 
T1  - THE MAIN CHANCES FOR NEW EQUITY
JF  - The APPEA Journal
JO  - The APPEA Journal
Y1  - 1994
VL  - 34
IS  - 1
SP  - 835
EP  - 844
KW  - 
UR  - https://doi.org/10.1071/AJ93063 
N2  - The main chance for new equity to be raised by Australian petroleum explorers is to:recognise that the unfavourable oil price environment of 1993 will change;in the meantime, understand the manner in which capital markets operate; andbe patient and ready for when it happens.In Australia we can obviously do little about global economic and market conditions, particularly the market for petroleum commodities. This paper is intended to ensure that petroleum explorers continuously consider their position from the perspective of shareholders, potential investors and other market participants so that they are well placed to benefit when capital markets turn in their direction.This paper:Provides an Overview of Australian capital markets;Deals with the Performance of the oil and gas sector within that market;Considers The Three Dimensions of investment decision-making; and, with those foundations,Outlines The Way Forward for this sector, in these difficult times.Equity markets have experienced a period of particularly strong support for equity raisings and there is a real prospect that the Australian stock market will exceed the previous all-time record high.During 1993 many listed oil and gas companies reported improved earnings performance and enjoyed increased share prices, although a flattening of exploration and development activity seems to have followed the lack of significant exploration success in recent years. With the odd exception oil prices have been generally stable in recent years. However, toward the end of 1993, a sharp deterioration in oil prices followed expectations of increased OPEC supply; not withstanding generally widespread faith in medium-to long-term escalation of all commodity prices, and oil prices in particular, investor appetites appear all too easily diverted to other market opportunities.Participants in this industry probably do more searching than finding when it comes to oil and gas reserves. The same is true for raising new capital. We will outline what companies must do to be ready to benefit from the right environment to raise new equity. 
ER  -

