Global Energy widens acquisition prospects

15th Sep 2016 10:59

(ShareCast News) - Global Energy, a petroleum exploration, development and production company based in Colombia, has decided to expand its operations due to the low oil price environment, even as its current output turnover decreased. According to the board sustained low oil pricing has created enhanced buying opportunities, stemming from highly-leveraged companies that are challenged with the current downturn.Chairman Mikel Faulkner, commented: "The group has been actively vetting acquisition prospects in both the petroleum development sector as well as the oilfield services sector during the first half of 2016. Global has not limited itself to looking at traditional petroleum exploration and production plays and has expanded its geographical research to cover potential opportunities outside of our current South America focus."The company continues to have the financial strength to support these acquisition plans, with a cash balance of $21m as of 30 June 2016, a note receivable balance of $10m with a 12% coupon and a debt-free balance sheet in the first half.The group has also reorganised personnel and work functions to streamline its efforts and strategically position the Company for advancement.Looking forward, the firm aims to create a more diversified portfolio of assets and companies to take advantage of future oil price stabilisation and longer term recovery.The group also decided to perform a portion of its remediation obligations related to the Bocachico and Bolivar contract areas in Colombia in order to take advantage of lower oilfield service pricing during depressed industry conditions in the region as well as reduce future environmental obligations.For the first half of the year, the outfit reported a drop in lifted volumes from 5,862 barrels to 3,946 barrels, with a decline in average realised prices from $37.10 per barrel to $21.38.