When exploratory drilling off the coast of Mozambique found gas it was a strong indication of rich potential in the area. One large US petroleum corporation and five small-cap companies have financial interests in the well, so why is it smaller-cap companies seem to be reaping the more handsome returns?
When exploratory drilling off Africa’s east coast discovered major reserves of natural gas under the Indian Ocean, the news was, quite rightly, trumpeted around the world. The very first well drilled in the Rovuma Basin, 30 miles off the coast of Mozambique, had found gas and that was a strong indication of rich potential in the area. This was cause for celebration for all the companies with a stake in the project. What happened next though is a tale of two share prices – and neatly encapsulates the difference between investing in the corporate giants and their small-cap cousins. D...
To continue reading this article...
Join Investment Week for free
Signup and gain exclusive members-only insights - all free of charge!
- Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
- Get ahead of regulatory and technological changes affecting fund management
- Important and breaking news stories selected by the editors delivered straight to your inbox each day
- Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
- Be the first to hear about our extensive events schedule and awards programmes
