Special CEO Feature
activity. The unconventional and shale area, particularly in Europe, is an area we’ll see more and more activity in also. I think the jury is still out with regards to the company level; we need to see more stability in the Eurozone. But if by the first or second quarter next year that is sorted out, I imagine the capital markets will return and the IPOs that have been stacked up will come to market and we may even see a boom come the third quarter.”
Why have you come to The Oil Council Assembly today?
“I’ve come to the Oil Council because I continue to be interested by the content that is produced here. There are a lot of faces that I come across in my daily business life, and in my opinion these are the guys doing the deals of today and tomorrow, and it’s a great place to network.”
… G g Hm ond, Prt re a m a ner, Akn Gu p Sra s a e i =============================================== When you look to 2012, what concerns do you have, and what excites you?
“I think 2011 promised a lot and didn’t deliver. I hope that 2012 will deliver, but right now, it isn’t promising a lot. The key trend is around access to capital. There are a number of planned IPOs that have been pushed back – I don’t think they’ll all succeed and if you haven’t already prepared for that IPO you’re probably too late for that opportunity. Those companies that aren’t successful finding capital, particularly those who need to fund big development projects will become vulnerable. The larger players in the sector are tremendously well capitalized, and they will deploy that capital opportunistically.
I think companies should make sure their plans for access to capital are drawn up now. They should be open to a range of options and make sure they’re well prepared. The window will open in 2012 but when, and for how long, I think is still uncertain.
I’m excited that we might see more activity next year. It’s going to be driven by capital – either access to or lack of access to capital – which will drive transactions. I’m excited that there will be a greater geographic diversity to that. Our clients are coming from North America, Asia, transacting in Africa and through the capital markets here in Europe – it’s a great globally diverse industry to be a part of.”
Why have you come to The Oil Council Assembly today?
“The Oil Council hasn’t been going long, but you’ve done a great job of building a good network in this industry. I’m looking forward to meeting people – some of whom we know and some of whom we don’t know. Events like this are hugely important to us.”
… J on C ke, UK Ha lar e d,Oil an d Gs ===============================================
Looking back on 2011, what lesson(s) will you take into your business planning for 2012? “The lesson everyone should remember in a time of financial crisis is that you absolutely need to have a strong
balance sheet and not face the necessity to go to the market at a time the market doesn’t want to provide the financing. The secret is to plan your fundraising long enough in advance so that you can pull the trigger when the markets opens up, which in volatility it tends to do, but not always.
The opportunities are there, the problem is always the volatility of the financial markets to be able to raise the funds for exploration, which has to be equity, or to raise the funds to develop the discovery which has to be the banks. If you are in the position where the asset you want to develop cannot be financed, then you are at the mercy of eventual partners who will know you are weak at that point in time.
What brings you to The Oil Council Assembly today?
“I find it interesting The Oil Council is having a panel on corporate governance, which is a subject I am very forceful on – the importance of having the right board and corporate governance to guarantee to the shareholders that they will all be treated the same.”
a, Er nst & Y ng ou m t us Hur & Fl ed
Drillers and Dealers :::
::: December 2011 Edition
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