Companies: ABG    EXR    HMY    HTG   

Westhouse’s recent market missive flagged up fascinating developments in the oil services sector, which operates on a different cycle to exploration and production. Lofty oil and gas prices will buoy the sector over the short-haul, while ‘the spectre of declining reserve replacement ratios’ for the oil majors will drive long-term spend towards the search for new hydrocarbon reserves.

A fundraising bonanza suggests the sector is in for a strong 2006. Hamworthy, the supplier of advanced fluid handling systems, announced a £17.5 million placing along with interim results, and Expro, Abbot and Hunting have tapped the market for funds. Investor appetite is palpable and stronger balance sheets help win bigger contracts.

As joint broker, Westhouse has marketed chemicals venture Zirax to investors ahead of planned first AIM dealings in December. The company produces and markets chemicals used in oilfield drilling and production as well as high-performance
de-icing agents – Halliburton and Wal-Mart are customers.