Ithaca Energy (LON:IAE) and SDX Energy Inc (LON:SDX) were favoured over 2016 due to their growing production profiles, Wahab highlights, while Hurricane Energy PLC (LON:HUR) and Sound Energy PLC (LON:SOU) stood out for their appraisal successes.
“We thought it would be another year of volatility but I think investor appetite has returned as they see this could be potentially the bottom of the cycle,” the analyst says in a Stocktube interview.
Having drilling two standout well successes in 2016, moving the giant Lancaster field in the North Sea towards production, investors in Hurricane will be hopeful of more success as it taps nearby exploration targets which could see as much as 1bn barrels of oil confirmed.
Like Hurricane, Sound Energy has been lifted substantially by drilling success.
At the Tendrara project the company has unearthed a possible multi-trillion cubic feet gas project in 2016, work programmes are ongoing in Morocco – and exploration drilling at the Badile project in Italy may provide the next exciting cab off the rank for investors.
Investors are readily anticipating new of upcoming drilling in the South Disouq exploration project which is located in an exciting area of the Nile Delta.
South Disouq is located at the southern fringe of what’s known as the Abu Madi-Baltim, a trend that is already host to major gas projects – estimated to have 6.3 trillion feet of gas and a 100mln barrels of liquids.
Drilling is expected to start either late in January or early February.
This one is a production growth story, with investors waiting for the start-up of the Stella field in the North Sea.
In November Ithaca told investors that the start-up had been delayed due to problems found on the field’s floating production facility.
Once ramped up Stella will more than double Ithaca Energy’s net production to between 20,000 to 25,000 barrels per day.