Oil outlook with Malcolm Graham-Wood of Malcy’s Blog, who joined Nick Batsford and Zak Mir to discuss which companies look best placed to prosper from stabilising oil prices.
Cairn Energy Plc (LONDON:CNE), Genel Energy (LONDON:GENL) , and Gulf Keystone Petroleum Ltd (LONDON:GKP) look like good buys, says Graham-Wood, as all three companies have promising recent fundamentals.Rockhopper Exploration (LONDON:RKH) may also see a strong gain in price following a recent discovery and diversification of projects.
Andes Energia Plc (LONDON:AEN) is one to watch as Argentina enters into elections and a potentially change political landscape.Falkland Oil & Gas (LONDON:FOGL) has quite promising technicals, but Malcolm warns of incredibly high risks outweighing potential returns and suggests avoiding this company.
His preferred stock in the sector, Graham-Wood also talked about Pantheon Resources (LONDON:PANR), whose shares may be massively undervalued as they begin testing new wells over the next few weeks. Mir believes the technicals support this, and a break above 26 could see the share price rise as high as 40.