AT least six Scottish oil and gas firms could be aiming for a stock market float in the next two years on the back of high oil prices. Support service companies as well as those in exploration are thought to be among the likeliest candidates. Investment sources say the continuing high prices, combined with the drop in activity by private equity firms and banks dealing with the impact of the credit crunch, could propel companies towards the stock market for fresh funds.

The two leading contenders for flotation are thought to be PSN and Abbot.

Oil services company Abbot only left the stock market earlier this year when it was bought in a £900m private equity deal.

PSN, another service company, appointed Goldman Sachs last year to advise on future strategy, which it has admitted would probably include a float.

PSN has grown significantly since the 2006 buyout and could be worth close to £1 billion, making it one of Scotland’s largest public companies.

One analyst said he put the number of firms heading for the stock market at a minimum of six and thought the eventual figure would be higher. “PSN and Abbot would be main market floats but I can see a number of companies floating on AIM too,” he said.

The best-performing companies on the stock market are those in commodities such as oil and minerals, and two of the most successful recent floats have been firms in the oil and gas sector.

Jon Fitzpatrick, head of energy practice at Brewin Dolphin Investment Banking, said some of the traditional routes for exit were now on a par with a stock market float.

“Private equity is still active, but not as much as before,” said Fitzpatrick, “and banks are not lending cash so easily, so companies will have to look to the stock market to raise the necessary capital.”

Stuart Heslop, managing director of corporate and institutional banking at RBS, said the bank has seen good levels of activity from Scottish corporates during the first part of 2008.

“This is true particularly in the oil and gas sector where there have been several mergers and acquisitions,” said Heslop. “I don’t think it’s inconceivable that a handful of Scottish companies could list in the next few years and, as things stand, the oil and gas sector would seem to be the most likely source.”

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