There’s no doubt that the small end of the oil and gas sector is heating up, having already delivered shareholders some major recent gains.
In London, Mongolian-focused oil and gas exploration company Petro Matad (AIM:MATD), has been one of the better performing oil and gas stocks over the course of 2019 to date, rising ~400% since the start of the year. MATD just announced that it has hit an oil target in one of the two exploration wells it is currently drilling in Eastern Mongolia.
Locally, impressive drilling results in the Perth Basin from Strike Energy (ASX:STX) and its JV partner Warrego Energy (ASX:WGO), lit a fire under the pair’s share prices beginning 23 August with Warrego and Strike soaring 90% and 65%, respectively, on the results.
Like Petro Matad, Elixir Energy (ASX:EXR) is also exploring in Mongolia. While Elixir is only just creeping onto the investor radar, it is drawing some comparisons to Strike and Warrego — not due to its location — but because of its huge upside gas discovery potential. Arguably, finding gas next door to gas hungry China would be far more attractive than in the over-supplied Western Australian market.
Elixir is also drawing comparisons to what has almost certainly been Australia’s most successful oil and gas junior of the past two years: Galilee Energy (ASX:GLL).
Galilee’s 100% owned and operated Glenaras Gas Project’s multi-lateral pilot program in central Queensland’s Galilee Basin is performing strongly and demonstrating excellent water rates, with the five wells flowing in excess of 6,200 barrels of water per day (BWPD) in aggregate as the reservoir is continuing to be drawn down. Gas is now also starting to flow and its production rate is on the up.