WTI (May) $86.59 +$1.16, Brent (June) $90.65 +$1.30, Diff -$4.06
USNG (May) $1.79 -5c, UKNG (May) 65.0p +1.8p, TTF (May) €26.405 +€0.51

The Bucket List

Firstly a couple of apologies, firstly it is my fault that the update in the Bucket List is very late. Indeed there have been two inclusions in the list during the gap both noted in the blog but again, unsatisfactory. Secondly I have been trying to partner with a company that can make the list available live and online for blog readers, sadly this has taken way longer than we both expected so it is yet to transform into a live pricing setup but they assure me that it won’t be long…

So here it is, the updated Bucket List which you will notice is slightly smaller, for a number of reasons some companies are not in it at the moment (and those who are suspended should return when the quote does) but I really do intend to update regularly in the future. And the subs bench is warmed…

In alphabetical order, like it used to be and the prices are of last night, bear in mind that some stocks have a substantial yield, when it goes live I would like to include running yields which should help total return for investors. 

Finally the ground rules for the list are as they were 10 years ago when Adrian Collins first asked for the list when commodities were in despair. Ironically as I write whilst a number of the shares are lowly priced, Brent crude is over $90 which should make good reading for those with oil to sell, gas is still under a bit of pressure but remains the long term transitory winner in the fossil fuel discussion. 

Afentra 

Afentra is a stalwart performer, since being in the BL it has doubled more or less on the year which puts it as an out-performer of its peers without doubt. With its fantastic programme in Angola and with another segment about to complete Afentra is in a very good space. 

Arrow Exploration Corp

Nothing succeeds like success and Arrow has been a poster boy since coming to London in 2021 and has repeatedly driven production in Colombia where it has had continued success with the drill bit and rapidly achieved reserve additions. As it moves towards horizontal drilling it has the scope to grow a great deal more and is on a lot of radar screens.

Challenger Energy Group

Challenger went on the Bucket list late last year when CEO Eytan Uliel predicted great things from the assets that he had assiduously picked up in Uruguay since the Pandemic. Slightly later than predicted he recently announced that he had farmed-out to Chevron on seriously good terms which keeps CEG with decent skin in the block. With another block also in negotiation there is exceptional upside for Challenger, if you haven’t already done so check out my interview with Eytan. 

Deltic Energy

Deltic is also a newcomer to the Bucket List, it too has two assets with massive upside in the Selene prospect and Pensacola, it also has a super major as a partner in Shell and has also recently completed a really good farm-out of Selene to Dana Petroleum. With a second half laden with excitement as both prospects will get drilled back to back and probably a farm-out of Pensacola Deltic is one of the cheapest stocks in the BL. 

Diversified Energy Company

Diversified has proved that its model of production across the states which generates huge cash flow and margins of over 50% works and in addition to that has paid out significant dividends over the years and also buy-backs making it best in class for investor returns.  Pretty much the leader in sustainability and with what I consider to be one the best managements in the industry, the company is now looking at further M&A options and with its US listing will more than likely see demand from investors in that market. DEC is the right company at the right time, as they say…

Eco (Atlantic) Energy Oil & Gas

It has taken a lot longer than even the company might have expected but Eco are now on the threshold of potential greatness. The spotlight nowadays is on South African and Namibian acreage where a patient build up of key positions has led to Eco being quite close to finding out what it came for. It also has its original position in Guyana, also a highly desirable and since the Tullow debacle and other licence changes Eco has 100% of the Orinduik licence which it will now farm-out. Much to like here and all upside with the drill bit going forward.

Genel Energy

Genel has hunkered down since the Iraq/Turkey pipeline has been closed but is now selling crude locally and at more than the G&A costs. With a strong balance sheet and not short of ideas in the M&A market, Genel shareholders have plenty to look forward to. 

Jersey Oil & Gas

Jersey has been busy in recent years building up the Greater Buchan Area into what will be one of the biggest and cleanest developments in the UKCS as well as doing two of the best farm-out deals in recent years. With undoubted demand for a development such as this, the management deserve credit for taking this from start up to a substantial and extremely valuable prospect, it gives the shares a huge upside I conservatively value at over £10 per share.

Kistos

Kistos has built a fantastic portfolio of excellent assets with most recently a foray into energy storage via a highly accretive acquisition from EDF. Along with the MIME assets which make a cracking Norwegian portfolio and of course the GLA assets in the Shetlands are highly profitable. Also you would never rule out the Kistos management from a major, likely unexpected move in the M&A market.

PetroTal Corp

PetroTal has made a genuine beast of a field at Bretana and production continues to grow, now over 20/- b/d and apart from times when river levels frustrate them the revenues afford amongst the best in class shareholder returns. With other export options being explored and potential exploration in the portfolio the shares should be massively rerated upwards.

Serica Energy

Serica’s acquisitions in recent years have been outstanding and make the current share price a joke as the company is in the forefront of UK energy players and the portfolio is now beautifully oil/gas balanced, forward looking thanks to the GBA deal and massively profitable. The board has flirted with upping the payout but I’m not sure they like that idea much. Always a shame to see a top notch CEO moving on but for Mitch Flegg he must consider that he has done his job here, actually twice but brilliant all the same. 

Southern Energy Corp

This high quality management has assembled a fantastic portfolio of assets which is profitable at these natural gas prices thanks to recently making huge savings in infrastructure in areas such as the southern gathering system. With the team giving the necessary optionality for when prices move, the flexibility creates a great deal of upside in the not too distant future.

Touchstone Exploration

Touchstone has been transformed by Cascadura coming onstream and delivering revenue streams and cash flows, all earmarked for driving forward the capital budget which has led to an active drilling campaign. With these wells likely to come onstream later this year Touchstone looks to be building into a substantial major player thanks to its fantastic portfolio of assets.

Union Jack Oil

Given what Union Jack has delivered in the last couple of years its shares have been poorly treated by the market. Huge increases in the production from Wressle have stacked the balance sheet and the highly exciting potential at West Newton gives a great deal of upside. Add to that the recent moves into the USA which should give more than decent royalty income with a nice bit of upside then the moaning from social media should be well and truly shut up.

Zephyr Energy

Zephyr are returning to their flagship project at the Paradox Basin where the previous attempt to drill ended in tears after an encounter with too much in the way of hydrocarbons. The drilling rig is preparing to drill the State 36-R well and which is mostly funded by the insurance on the last drill. With immense knowledge of the rocks one hopes that this barn burner will be tamed this time and expect the redrill to deliver the goods. Zephyr have used the canny purchase of the Williston Basin assets to provide cash flow and also have an interest in the Salt Wash Helium project which whilst not considered to be top of the list of assets are considered to have ‘significant and unrecognised potential’. All in all this should be a big returner from one of the best teams in the sector.

KeyFacts Energy Industry Directory: Malcy's Blog