Oil And Gas Outlook Positive: Patersons
Speaking at the RIU Good Oil Conference in Fremantle, Western Australia, Bradley said oil and gas from a pricing perspective is a lot more robust than we're seeing in some other commodities in Australia such as iron ore.
"Oil is still trading from US$100 a barrel, both internationally and in the US. For someone who has been in the industry for about 18 years that's an incredibly positive operating environment for our stock," he added.
Bradley believes the landscape is increasingly positive for investors, stating "with $100 a barrel oil I think you are going to start to see an improvement, not just in terms of operational performance but hopefully share price performance as well".
The steady oil price currently outweighs the risks posed by rising oil exploration costs which have risen with the increased complexity of extraction methods, Bradley argues.
Offshore rigs as well as the burgeoning use of horizontal drilling can pose a significant pressure on extraction costs. Yet, the stable oil price provides confidence to the industry, allowing companies to expand their operations and increase investor involvement.
Patersons Securities has extensive experience in the oil and gas industry, providing corporate finance services as well as equity research for a number of significant companies and investors.
Patersons Securities is one of Australia's largest stockbroking and financial services firms, offering a broad range of services including, private client services, tailored financial planning, corporate finance services, institutional dealing, equities research and asset management services.
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Professional Public Relations (PPR)