First Titan Corp. (OTCBB: FTTN) is intently watching several key market indicators and trends that may foreshadow a surge of oil & gas industry mergers – mergers that could provide opportunities to grab revenue-producing assets others must shed to fund consolidations.
A number of energy analysts have said several oil & gas companies could be potential takeover targets in the current climate. While crude prices have lately improved, companies with heavy debt and high costs are still looking to shed assets to bolster their bottom lines or even further, to consolidate with competitors to improve their positions, which also leads to asset sales to pay the costs of a merger. The recent decision of one North Dakota shale producer to put itself up for sale has industry watchers speculating the market will soon see a rash of takeovers.
“The industry is rife with merger talk,” said FTTN CEO Sydney Jim. “While no big deals have yet been announced, this could be the quiet before the storm, so to speak. Should this anticipated megamerger wave finally break, FTTN is in a prime position to take advantage of any opportunities that arise. Our strategic goal is to acquire revenue-producing assets other companies have to shed at bargain-basement prices. This will enable us to build a robust portfolio that will benefit our company and its investors.”
FTTN has spent the past months studying the market and scouting potential asset acquisitions, both in the United States and in Mexico’s newly reformed energy sector.
First Titan Corp., through its wholly owned subsidiary, First Titan Energy, LLC, is committed to the exploration and development of oil and natural gas resources around the globe.