Producers aren't retreating in the face of softening oil and gas prices. Most surveyed North American oil and gas operators expect to be net buyers of reserves this year. The survey was of nearly 800 of the approximately 1,900 reserve purchasers listed in the Oil and Gas Finance Sourcebook. The asset buyers and sellers represent some 700 public and private E&P companies. Among them, 75% expect to be net buyers of oil and gas reserves this year, 60% expect asset prices will cost as much this year as last, and 55% expect average natural gas prices to be as good this year as last. In the lattermost results, 30% expect higher gas prices. One participant added, "We have reviewed and rejected over $90 million worth of acquisitions so far in the first quarter." The survey was conducted in early March. For more on this, see the April issue of Oil and Gas Investor. For a subscription, call 713-260-6441.

Comments