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By Malcolm Stacey | Tuesday 28 March 2017
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.
Hello Share Plungers. It’s not very often a small oil company rewards its investors. What with the falling oil price and all. But just look at Hurricane Energy (HUR). About 12 months ago, the shares were about 10p. They now stand at 59p! But is this the top?
I rather think not. And why. Because the company has just announced that it's found ‘the largest underdeveloped discovery’ of the ebony nectar in British waters.
Of course, this is what beleaguered investors in oil explorers dream about. And yet sadly the dream so often comes to nothing. I myself have lost a packet on companies looking for the black stuff and yet never finding it.
So a find like this for Hurricane gives us all hope. The find, 60 miles west of the Shetlands, is very much better than the average British find of recent years, which is 25 million barrels, and has been made in two wells which are 30 kilometres apart. Production won’t start though until 2019.
Hurricane has been a favourite of oil investors because of its policy of focusing on neglected geological set-ups, known as fractured basement reservoirs. It works, because Hurricane reckons it has found more oil in UK waters than any other company over the last ten years. It must be doing something right that its rivals are not!
But we all know that finding more oil is not the end of the story these days. The price of Brent Crude needs to improve to help all oil companies. Never mind, Hurricane still seems, in the light of such an exciting discovery, rather a good investment to make.
And now the Punter’s Return beckons.
Never miss a story.
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