Hot Stocks - Amerisur Resources, Genel Energy and Carin Energy

PUBLISHED: May 28 2015 @ 05:10 | Comments (0) | More info about Long Over Short

I thought I would go through a couple of stocks that I’m a real fan of at the moment. Go onto longovershort.com and click on the companies tab to read full research pieces. At the moment I’m really looking for companies with strong production and strong balance sheets.

Amerisur Resources (LSE:AMER) – The proposed pipeline from their Platanillo field is the main price catalyst here. Already late, the company say it will be running in around October this year. The installation and commissioning of the pipeline will truly transform the economics of Platanillo and production will be increased to 8,500 bopd. Currently sitting with $72 million in the bank, an undrawn $175 million reserves based lending facility and no debt. Its a very strong balance sheet and is in no danger of a dilutive equity raise to fund an exiting exploration programme next year.

Genel Energy (LSE:GENL) – Although the risks in Kurdistan remain high this is still a great company to invest in. Great entry point at current prices. World class assets, robust balance sheet, increasing production and a great management team. The gas here is a huge value driver and will become a cash cow in no time. A lot of talk of Genel acquiring Gulf Keystone around at the moment but I think this is highly unlikely as Genel don’t want to load their balance sheet up with Gulf Keystone’s debt too. Genel itself is very likely to be taken out once it calms down in Kurdistan and payments from the KRG resume.

Cairn Energy (LSE:CNE) – Cairn is a bit different to the other two, Senegal is what really excites me here and when I look at the company as that’s the key. I think the most likely option is that Conoco take their stake there and it will be for an absolute ton of cash. Two appraisal wells and one exploration well in Q4 to come which if they come in this will shoot above £2 in no time. Their Senegalese discovery was the biggest discovery in the world last year and those wells are going to be huge.

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Feel free to email me at longovershort@gmail.com with any questions about these stocks or any others.

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