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Some of these micro cap energy stocks are worth looking into, as long as one exercises extreme caution. Volume can run thin at times or the spread between bid and ask could be very wide. However, some of these energy names can outperform S&P by 30% or more in a relatively short period of time. Instead of going to Vegas on weekends and flushing your money down the toilet, allocate a very small percentage of your portfolio to speculative stocks. Here are a few small cap names that have come down substantially that sparked my interest.

Solazyme Inc.(NASDAQ:SZYM) is in a business of transforming plant based sugars into oil. Some of its products can replace or enhance oil that is obtained from petroleum, plants, and even animal fats. The stock has been plummeting since July’s high of $26 a share down to currently $8.57, losing almost 59%. This stock seems oversold and is toggling at a relative strength index (RSI) of 30. Keep it on your watch list and wait for the short interest to decrease before trading.

The recent deal with Exxon Mobil Corporation (NYSE:XOM) shed light on a nano energy stock named AER Energy Resources Inc. (OTC:AERN). The company just announced a $1.875 billion joint venture agreement with Riverton Energy to purchase oil and gas leases in Louisiana to drill 12,500 feet to test the Nodsaria Frio Sand, the Cockfield Sand and the Sparta Sand, which are producers of oil and natural gas in fields of Fordoche, Livonia and Opelousas. It expects to recover nearly 300,000 barrels of oil and 3.2 billion cubic feet of natural gas, estimated at $38,000,000. In addition, AER Energy has entered into an agreement with Energex Fuel and Triton Global Petroleum to supply approximately $420 million of Exxon Mobil product each year to the aviation industry.

Another stock I like is TransGlobe Energy Corp. (NASDAQ:TGA), which is an upstream oil and gas company operating in Yemen and Egypt. The stock has popped 4.5% with a light volume Monday and has been showing increased activity. Its PPS has also been plummeting since June and seems a bit overdone at this point. TGA has a solid balance sheet with a low debt load on its books. It has made several attempts to break over its 50-day moving average, but was unsuccessful so far.

Source: 3 Small Cap Energy Names With Increased Revenue Growth