The romance of oil and gas exploration (from a geologist's perspective) can 'drive a company into bankruptcy' I once heard a CEO say; a bold statement but in many ways a true one. High risk exploration has become considerably less attractive in the last 6-12 months for reasons I believe don't need any introduction or explanation. This has made many boards come together and decide it is a wise decision to change the direction of companies towards creating a more production and appraisal driven portfolio which will allow for a net income and the ability to still play with a little romance on the side.
However, it is very much a chicken and egg scenario especially for small independent exploration companies finding it difficult to raise capital without a deal on the table, but how are you meant to be in the running for a deal without any capital... I believe a great analogy for this is when you are in your junior years and you struggle to get a job because you have a lack of experience,