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Oil Exploration and Production Stocks to Pop

Apr. 11, 2011 12:01 PM ETBDCO, FOR, DBLE, FDP, HAL, BATL, MXC, TPLM
Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

 We have recently added Samson Oil to our wildcat stocks to watch, and it seems that there are some additional exploration and production companies that are following suit. Here are some of the stocks we will be watching, and we think you should too. Michael Filloon gives us a great breakdown of some of these companies. One of the companies mentioned is Blue Dolphin Energy Company, which we have also included on our wildcats to watch, check it out here.

Double Eagle Petroleum Co. (DBLE) has almost doubled in that last month. This company is a play on the Niobrara (remember different area), as Samson is. Double Eagle has 70,000 net acres and is planning to drill one test well this year. A very important note, Double Eagle’s asset is in the Atlantic Rim that is approximately 200 miles from where Samson/Chesapeake/Halliburton (HAL) are. Also, Double Eagle is the 12th largest coal bed methane producer in Wyoming, so this company is not to be valuated like a company with substantial liquid reserves. At the end of the third quarter of 2010, gas was 97% of the business. This company also has a pipeline-based income. On February 22nd of this year, Brookfield Asset Management upgraded the company from hold to buy based on third quarter earnings. It seems that Double Eagle is maintaining a profit. This company could have significant upside if its Niobrara holdings are oily, but this is a play on speculation.

Credo Petroleum (CRED) is another company flying under the radar. It seems Credo is worth a look. I covered this stock in February because they have a very good story. Starting in 2006 and lasting a decade, Credo appreciated its stock price from around a half dollar to $30. It seems they were a natural gas company with Calliope, a natural gas recovery system. Since then they have converted to oil in quick fashion, with a 150,000 gross acreage in Kansas and 7,200 gross acreage in the Bakken. They also have another 70,000 acres in Western Oklahoma and the Texas Panhandle that Credo has stated will start to drill as soon as gas prices improve. In January, Credo completed its third Bakken well. This created a large spike in stock price from around $8 to $12.

Read the entire article here: http://turnkeyoil.com/2011/04/09/oil-exploration-and-production-stocks-to-pop/

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