With liquidity still an issue, small and mid-size upstream oil and gas companies continue to feel a disproportionate impact of the ongoing financing squeeze from the debt crisis and the uncertainty in the capital markets.
While lenders and debt investors continue to show a willingness to provide capital to larger oil and gas companies, the same cannot be said for small and mid-sized upstream companies, those with leaner operating cash flows and a smaller asset base. Compounding the effect of the crisis, Basel III regulations are forcing lenders to deleverage and recapitalize, which will continue to leave, for the foreseeable future, many small and mid-sized companies in need capital-starved………………………………………..Full Article: Source