Island Exec: $100 Oil Not Positive for Smaller Cos.
Following the Island Oil & Gas Annual General Meeting, Brian Benitz, the non-executive chairman of the company released a statement. In addition to outlining positive steps Island made in 2007 and enthusiastic plans for 2008, Benitz commented on the company's price performance.
"We acknowledge that the share price performance has been disappointing despite our successes, steady newsflow and an active investor relations program," Brian Benitz, Non Executive Chairman of Island Oil & Gas said at the company's AGM. "The Board believes that this has been primarily as a result of factors affecting the AIM market as a whole, particularly smaller companies who, without significant production, are not benefiting from the nearly $100 per barrel oil price we are currently seeing. The days of high valuations for pure exploration are over – hence our drive to monetize assets and acquire projects with shorter lead times."
Benitz touted the company's successes in 2007, citing progress in monetizing the company's assets. Additionally, Island pointed to a successful drilling program in the Celtic Sea and the farm-out of its Atlantic Margin acreage in efforts to accelerate drilling activity. The company also acquired international exploration acreage with either proven oil reserves or high potential.
"We are continuing with our strategy of farming down our interests in projects and securing farm-in partners with the potential to accelerate activity and add significant value," Benitz said.
"We believe that 2008 could be a transformational year for Island," he said.
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