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SmallCap Oil & Gas Pipeline Sector Plays

|Includes: BRNC, GSXN, Kodiak Oil & Gas Corp (KOG), ROYL

The oil and gas pipeline sector tacked on a remarkable 2.21% gain on a day the S&P 500 gained a mere .40%, making these companies some of the biggest movers on Wall Street today. The gain comes in light of June spot prices on natural gas climbing since last May, rising $.18 per million Brittish thermal units, or mBtu, and a gain on oil prices hovering around $75 to $80 per barrel intraday. We spoke with Chris Jarvis, he’s an expert on natural gas and oil production companies and president of Caprock Risk Management, a fund that offers derivatives and options trading and hedging solutions for the world’s oil production companies. Our video interview with him will be posted by tomorrow afternoon. In it, we talked about what will happen to natural gas and oil prices should we experience another aggressive hurricane season like we did back in 2005. Check out the video to see what he says.

In the meantime, here are some companies that moved on the back tail of the spot price movements in oil and natural gas in light of BP’s catastrophic failure in the Gulf that are in our focus. Could investors be tired of humungous, large-cap companies and their politics?

Bronco Drilling Company, Incorporated (NASDAQ: BRNC) $110M (MarketCap) closed up $.47, or 13% at $4.05 a share. Bronco provides contract land drilling and work over services to the oil and natural gas exploration and production companies in the United States.

Royale Energy, Inc. (NASDAQ: ROYL) $23M (MarketCap) closed up $.18, or about 9% at $2.25 a share. An independent oil and natural gas producer, whose main lines of business are the production and sale of natural gas, acquisition of oil and gas lease interests and proved reserves, and drilling of both exploratory and development wells. In May, the company reported improved quarterly results.

Gasco Energy Inc (AMEX: GSX) $45M (MarketCap) closed up $.05, or 14% at $.415 per share. A natural gas and petroleum exploitation, development and production company which is engaged in locating and developing hydrocarbon resources, mainly in the Rocky Mountain region, the company’s shares jumped more than 9% in the last 90 minutes of trading.

Kodiak Oil & Gas Corp (AMEX: KOG) $414M (MarketCap) closed up $.21, or 6% at $3.48 a share. An independent energy company focused on the exploration, exploitation, acquisition and production of natural gas and crude oil in the United States, Kodiak announced late May 2010 of a new credit facility that will allow the company to implement its growth and expansion plans over the next few years.

Cubic Energy Inc (AMEX: QBC) $67M (MarketCap) closed up $.06, or 6% at $1.06 a share. Closely covered by WMM Editor’s Desk for some time now, the company is in our MicroCap Index for showing great potential for growth and acquisitions. Cubic, engaged in the development and production of, and exploration for, crude oil, natural gas and natural gas liquids, yesterday held a shareholder call we were on that outlined growth plans going forward now that the company is cash flow positive. Read our article here.

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Disclosure: no positions