Even after some correction in the recent past, Brent oil trades near $70 per barrel. With accelerating global growth, it’s likely that oil prices will remain above the $70 mark. That’s why we are focusing on 3 oil and gas penny stocks you should have on your watchlist:
Allied Energy Corporation (OTCMKTS:AGYP)
Allied Energy Corporation, (OTCMKTS:AGYP), an oil and gas explorer with several leases, is currently focused on two which are closing in on production in North Texas, Annie Gilmer and Green Leases respectively.
This week, AGYP released 6 tweets detailing work at the Green Lease. The tweets showed three videos of a disposal well, photos of their drilling rig, as well as a video of a new surface hole.
The drilling rig is exciting because that’s what’s needed prior to production.
Generally, AGYP stock has reacted well when the company tweets,.the last time they released a large string of tweets on July 6th the stock hit its recent high of 83 cents shortly after.
Camber Energy Inc. (NYSE:CEI)
Camber Energy Inc. (NYSE:CEI) is an energy company with ownership interests in oil and natural gas assets across both the Gold Coast and mid-Continent regions. With its subsidiary, Viking Energy Group Inc., CEI is able to participate in many different areas of the energy sector.
This week, Camber announced that it had acquired a 60.5% stake through its subsidiary in the company Simson-Maxwell Ltd. Simson is a producer of industrial engines and power generation products as well. With over 80 years of history in the industry, this is a solid acquisition for the company.
Ring Energy Inc. (NYSE:REI)
Ring Energy is focused on Permian assets in Texas and New Mexico, the Permian Basin is currently the second most prolific formation in the US. REI reported sales of 7,960 boep/d with 85% oil for Q1.
REI has proved reserves of 76.5 MMBoe. The PV10 of proved reserves was $638 million. With a market cap well below this mark ($270 million) REI is an interesting opportunity.
REI also reported adjusted EBITDA of $19 million and free cash flow of $2.9 million.