exploration segment of the industry remains somewhat lethargic

Major exploration efforts are essential to identify badly needed new reserves. Yet the exploration segment of the industry remains somewhat lethargic — for a number of reasons.

It’s a bottom-line thing, according to Burbach, who cautioned the audience not to fall into the “90-day report card” trap, referring to Wall Street’s unrealistic demand for specific growth numbers from the E&P companies every three-months.

Other, yet related, issues he cited for stalling exploration efforts include:

* Fear of loss of investor confidence.
* Fear of downgrading by analysts.
* Industry-wide beliefs that acquisitions are better (safer?) targets.
* Capitalized effects of front-end cost G&G items to company’s bottom line.

A Hungry Market

“Right now, it seems the industry has forgotten about making discoveries and is focusing its efforts on anything but exploration,” said John Seitz, co-chief executive officer and director of Endeavour International Corp.,

http://www.aapg.org/explorer/2004/12dec/industry.cfm