WTI $79.46 +%1.61, Brent $81.99 +$1.19, Diff -$2.53 -42c, NG $3.81 -7c, UKNG 245.2p +4.25p
By Malcolm Graham-Wood
The Bucket List 2022
I published the ‘results’ of the 2021 Bucket List on 22/12/2021 which were I thought satisfactory. Of the 21 stocks 13 were in positive territory, 7 were down and 1 remained suspended. Whilst all that is history almost all of them remain in the list for this year, as you know I am a long term player and in most cases the reasons for me expecting them to return above the norm are still in place.
Whilst there is a very good quality ‘bench’ of companies waiting to come into the list I think that is a good thing and there are plenty of readers out there who regularly spend time recommending stocks to me and I welcome this and try and make contact and meet with them if I can.
One of the new entries this time around is Advance Energy which is seeking growth through acquisition or farm-in to non-operated interests in discovered upstream projects. Right now that project is the Buffalo-10 well being drilled offshore Timor-Leste. The well is being drilled to test for the presence of commercial quantities of high-quality light oil that is expected to lead to the early re-development of the Buffalo field. ADV will slip into the High Beta section of the List, not particularly because the well is a huge wildcat but this well needs to be right at which time prescient investors will, I think, do very well.
The second new entry is Orcadian Energy which will slip into the UK Stocks list and is another relative new kid on the block, the team here is very strong indeed and the management have a very large piece of skin in the game. I see ORCA as joining the companies that are making progress in the North Sea with low emissions plays and net zero credentials. ORCA has a substantial reserves base, assessed by Sproule and for a company of this stage this is very unusual, it has finalised its Concept Select process and moved to the ‘authorisation phase’ for the flagship Pilot development for which it has already won funding of £466,667 in the OGA Electrification Competition. Looking ahead there will be demands such as the funding of such a big development and of course this will be helped by the fact that they are already looking at FPSO requirements.
These two stocks replace President Energy and Challenger Energy Group from last year, the former at long last delivered and was up 62.7% placing it in 7th in the list and could now do without the burden of my continued support but which it still has! I chose Challenger as Bahamas Petroleum ahead of the drilling of Perseverance-1 and hence its appearance in the High Beta section of the list, the result speaks for itself but there must always be high risk plays in these portfolios in my view. Actually given the work that Challenger CEO Eytan Uliel is doing already on the cost base and the portfolio I was severely tempted to stick with it but I think best to reappear from the subs bench.
Others on the subs bench are very close to admission, Pharos has real scope in Vietnam and presses Jadestone which needs to keep its strength going in that geography and I am expecting exciting things from Afentra in Africa before long. Sound keeps making moves in Morocco, VOG in Cameroon and back to high beta will Empyrean come in at the Jade prospect?
So the new Bucket List for 2022 with prices as at 1/1/2022 looks like this.
Jersey Oil & Gas
Union Jack Oil
Predator Oil & Gas
Diversified Energy Company
San Leon Energy
High Beta stocks
Eco (Atlantic) Oil & Gas
2021 Bucket List – A reminder
- Zephyr Energy +911.4%
- Kistos +300.1%
- IOG +268.3%
- Serica +253.3%
- PetroTal Corp +202.3%
- Predator Oil & Gas +72.1%
- President Energy +62.7%
- Jadestone Energy +50.5%
- Wentworth Resources +36.2%
- Savannah Energy +29.8%
- Jersey Oil & Gas +16.2%
- Diversified Energy Company +3.68%
- Genel Energy 0%
- Touchstone Exploration -5.1%
- Chariot -8%
- Longboat -13.9%
- Eco (Atlantic) Oil & Gas -15.4%
- Scirocco Energy -18.6%
- Union Jack Oil -47.0%
- BPC/Challenger Energy Group
San Leon remains suspended but will be slotted in if appropriate when it returns.
2 Interviews about the Bucket list are below:
Flagstaff TV: Malcolm’s Stock Bucket List 2021
IG Outlook 2022: UK small-cap oil
E&OE Malcy January 2022…
The opinions expressed here are those of the author
Disclaimer: Malcy’s Blog is provided for general information about the international oil and gas industry and the companies that operate within it. It does not constitute investment advice and Malcy does not buy or sell shares, warrants or bonds in any company written about within the blog. Information is taken from publicly available sources and any comment is that of the author who does not take any third party comment in the blog
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