Fund Gurus

Afren: Growing Production And Reserves, Yet Severely Undervalued

Introduction

Oil and Gas companies have suffered from negative sentiment over the past few years, trading on multiples below their historic average and suffering from de-ratings. However, with the oil price remaining elevated, demand growing driven by a global recovery and a lack of viable substitute energy, these stocks may finally be re-rated, releasing shareholder value. Obviously there are certain energy stocks better placed than others, and one stock we like at Fundgurus is Afren (OTCPK:AFRNF), a UK listed energy company. This stock ticks two key boxes in that it is successfully growing production and also reserves. It has an excellent exploration record, is investing in asset development and yet does not trade on a reflective multiple. As...

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