Bosses at a North Sea start-up said today that recent market turmoil and plunging crude prices would boost their chances of sealing acquisitions.
Longboat Energy, founded by the former management team of Faroe Petroleum, said it was likely that companies who are “distressed” or financially “constrained” may seek to sell assets to stay afloat.
Longboat will be waiting in the wings to swoop “opportunistically” for oilfields which take its fancy, they said.
The company raised a £10 million warchest after listing on the London Stock Exchange in November.
Bosses want to expand the business through mergers and acquisitions and exploration.
They have looked at “multiple” acquisition options since November, but none have resulted in a deal.
Chief executive Helge Hammer said: “We believe that if the recent fall in the oil price is sustained, it will provide an increasing number of material and attractive opportunities.
“We have a robust bank balance, low general and administrative costs, strong industry relationships and institutional support.
“As such, we are well-placed to exploit existing as well as new opportunities arising from falling oil prices.
“We expect transaction valuations to decrease and thus potential returns to shareholders to grow significantly.”
Longboat’s chairman is Graham Stewart, who set up Faroe in 1998 and remained in charge until January 2019, when DNO succeeded in its hostile takeover of the Aberdeen-based business.
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