The Barryroe oil field off of Ireland looks attractive on paper in term of the resources, but it has been well over a decade now and it is yet to be developed.

It’s been a while since we’ve had a new IPO of a large oil and gas company in the UK, so Ithaca Energy (ITH) caught my attention, especially as it is a company that I had followed previously when it was listed.

Caerus Mineral Resources (CMRS) is a company that I tipped as a speculative buy when it IPO’d, and after initially performing well, the share price has since crashed.

Back in March, at the request of a ShareProphets reader, I took a look at Capital Metals (CMET) and noted that although the company and its resource didn’t really appeal to me personally, I could see some potential there if and when it reached production.

With the recent weakness in the prices of some commodities, including copper, many junior miners at the pre-production stage have seen their share prices drop substantially. That has definitely been the case with US copper explorer Phoenix Copper (PXC) which was trading at close to 70p earlier this year, but has since gradually slid all the way back down to a current price of just 20p, and without any company specific news really justifying it.

Whilst I’m generally wary of investing in small oil and gas companies, occasionally one comes along that appears to be in the right place, at the right time, and with the right assets and management team.

Afentra (AET) has finally relisted after being suspended for nearly a year whilst it completed the acquisition of producing oil assets in Angola.

Canadian Overseas Petroleum (COPL) seems to have been getting a fair bit of attention today after releasing an incredibly rampy resources update for its Wyoming asset, with the focus being on oil in place rather than actual reserves and what might be extracted.

Quite a lot has happened since I covered Jadestone Energy (JSE) as a buy just over a month ago, and recent news has further strengthened my positive outlook on the company.

It isn’t really surprising that any companies operating in the region where the current conflict between Russia and Ukraine is going on have taken a big hit to their share price since it all kicked off, but that can also present opportunities as long as you are prepared to take on the risks associated with that.

Serinus Energy (SENX) shares have performed pretty badly, considering that oil and gas is currently in a bull market, but I believe that the next set of operational and financial results could be a turning point for investors.

A couple of weeks back I wrote a piece here about how I was excited about the prospects of a small AIM oil company, Afentra (AET), where I hold a stake myself and which had just announced that it had potentially secured a stake in two blocks, subject to final due diligence. The company has now announced that it has entered into a sale and purchase agreement with the vendor, Sonangol, and has released a lot more information on the finer details of the proposed transaction – including the fact that it is expected to be funded from existing cash balances plus debt, and with no equity dilution to existing holders in order to complete the deal.

Central Asia Metals (CAML) is one of those companies which I think is consistently undervalued by the market, and although it carries some degree of geo-political risk, I believe that too large a discount is applied for that.

Capital Metals (CMET) has been covered in the past on ShareProphets, both positively and negatively, and, on behalf of a reader,  Tom Winnifrith asked me to take a look and give my latest thoughts on this Sri Lankan focussed miner. You see, we do read your emails.

Pantheon Resources (PANR) has a market cap of close to £1 billion but isn’t yet producing oil, which begs the question as to whether or not it is worth the current valuation and how much risk is attached to buying it at this level.

IGas Energy (IGAS) has been performing well recently in terms of the share price, but following the latest trading and reserves update it has taken a bit of a hit and pulled back more than 14%.

Advance Energy (ADV) is a company which I covered last summer and suggested that although it has a very chequered history, new assets and a completely different management team made it well worth a speculative buy with a drill to come.

A real buzz seems to have returned to the oil and gas sector in recent times and with commodity prices at their strongest for several years, and that even seems to be trickling down to the lower end of the market and the explorers now with some shares on a real rip.

These days I’m generally not a fan of tiny natural resources companies and tend to avoid them as they rarely attract the positive sentiment and momentum that we have seen in the past, and most will never even come close to actually extracting anything from the ground.

JKX Oil and Gas (JKX) is a company that I’ve followed for a number of years but it has never quite lived up to expectations, nor performed anywhere near as well as its assets on paper suggest that it should have.

Asiamet Resources (ARS) has been a very frustrating share to hold and in the past I have been less than impressed with the management, especially when it comes to the Aeturnum debacle at the start of this year.

Sometimes I look at a company and think its shares are just too cheap at the current market cap and is pretty much being priced to fail, yet in some cases there certainly doesn’t appear to be anything fundamentally wrong that suggests that to be the situation.

The recent share price movement on Eurasia Mining (EUA) looks even more dodgy now in light of today’s announcement of a placing, and I would be surprised if there hasn’t been some forward selling going on.

If you want to invest in London listed precious metals producers your choice of shares is fairly limited, and has become even more so in recent years following takeovers of a couple of the popular miners.

Following a strong upwards move, platinum group metals have taken a bit of a dip recently but are still at levels that should generate plenty of free cash flow for producers, and the share price weakness that some of those have shown the past couple of weeks could present a buying opportunity.

When I covered Longboat Energy (LBE) last July there was much derision on social media and bulletin boards over my opinion that the company was well overvalued at the share price at that time, but it has just announced that it is raising funds at discount of around 40% to that level in order to complete an acquisition.

Whilst I mostly stick to trading and investing in companies that are listed in the UK, in recent times I have started to look elsewhere for potential precious metal producers which look interesting.

When an AIM company changes its name it can often be to try and hide a dodgy past, generally where it has raised money consistently from shareholders but failed to actually deliver anything, but there are also times when it can signal a change to the business and a move in the right direction.

Copper is all the rage at the moment, and rightly so as the metal looks likely to remain strong in the coming years, with potential shortages forecast.

I’m always happy to take a look at companies at the request of ShareProphets readers, one of whom recently contacted us asking if we would have a look at Helium One Global (HE1).

Centamin (CEY) has always been one of my favourite gold producers, and although I may not be as bullish as fellow ShareProphets writer Nigel Somerville, I still expect the metal to do well over the next few years.

Private investors are often looking to buy into companies where the share price has fallen, rather than those which are near all time highs, but in some cases that is the opposite of what they should be doing!

Atalaya Mining (ATYM) has been a favourite of mine for a few years now, but seems to be one of those shares which you rarely see mentioned on social media and the bulletin boards. It was formerly EMED. Ring a bell?

It’s not often that I take much notice of the smallest mining companies at the lower end of AIM, but every now and again one gets my attention as being worthy of taking a look at if you want to take a bit of a punt on shares in something more speculative than the popular producers.

The recent rise in the share price of 88 Energy (88E) has been very noticeable and it has held those gains so far in spite of the company putting out a statement that it knew of no reason for the rise, other than what had already been disclosed via RNSs.

I recently wrote a piece on. ShareProphets suggesting that Asiamet Resources (ARS) would be carrying out a placing within the next few weeks.

When it comes to investing, I’ve always gone on the basis that you should always react to new information, not necessarily in terms of buying or selling, but certainly in assessing upside potential and risks – even when that emerges soon after you’ve made a decision as to whether or not a company is worthy of investment.

Mining companies often operate in parts of the world that you definitely wouldn’t consider to be safe or politically stable, but despite that many of them operate fairly smoothly and rarely have major issues when it comes to their mines.

EnQuest (ENQ) is a company that I have followed for a long time and have previously been invested in myself, but over the past few years its shares have performed terribly and has never really recovered from the previous oil price slump, which bottomed out in 2016.

This year a lot of private investors seem to have been focussing on any stocks even loosely associated with Covid, plus those in the tech sector, and more recently mining has also seen a resurgence, gold in particular, but oil and gas has very much remained unloved and out of favour. That gives you a great opportunity and this is no fisherman’s tale…

The most read non-Tom article this week is Centamin – Life of Asset review: can we now plan ahead? by Nigel Somerville (for an unheard-of eighth week in a row) at a terrific number two or at number six, including Bearcasts and Tom’s new shareshow.

Whenever a smaller oil company is drilling a well these days you pretty much have to expect the share price to get hammered unless they announce a substantial find that exceeded market expectations, and that is exactly what hammered to Union Jack Oil (UJO) this week.

Back in August I wrote about Shanta Gold (SHG) as being worth a look at around the 16p level, and with a chance of a good profit over the coming months.

It has been some time since there has been a really big exploration drill for an AIM listed company, but that is exactly what should be coming soon for Bahamas Petroleum (BPC).

Greatland Gold (GGP) is a company that I’ll happily admit to having been wrong about, as were many others, and a lot has changed since I last looked at it around the time that Newmont Mining had decided to terminate its involvement. At the time, I expected that Greatland would go the way of so many other small mining companies that promised a lot and then failed to deliver, given that Newmont had decided not to exercise an option to partake in a joint venture on its Ernest Giles gold project in Australia. At the time it was extremely early days with Havieron licence area, which is now the main focus of attention and which has turned the company around…

Hurricane Energy (HUR) promised so much but it looks like it will end up joining the long list of failed companies in the natural resources sector following recent updates, including the interims today.

Gold is all the rage at the moment and looks set to remain strong, even if we do see some pullbacks or it not advancing to the price levels that some are predicting. So, it is no surprise that there is so much focus at the moment on any company operating in the gold sector, either producing or even just early stage explorers. With such a big recent rise in the gold price, many miners have followed it upwards, so if you are only just getting into gold now, the trick is to try and find value, and if something does look cheap, to understand why it might be trading at a lower market cap than you would expect. One ShareProphets reader has recently asked me to take a look at Tanzanian gold producer Shanta Gold (SHG), as to him it seemed relatively cheap and he wondered if there was a good reason for it being so…

The AIM market is full of companies which have never managed to achieve anything of note despite operating for years, and often it isn’t that hard to spot when they are going to raise more funds imminently.

So far Asiamet Resources (ARS) has been fairly typical of many small AIM resource stocks, in that it has largely failed to live up to expectations and has had to keep raising money at ever-lower prices over a number of years.

There is a lot of focus on oil companies of all sizes at the moment, with many investors speculating on their future recovery now that commodity prices have improved, but I would probably be more focussed on those which largely produce gas.

Gold stocks seem to be very much on the radar at the moment, with the price of the yellow metal looking very strong against a back-drop of worldwide concerns over coronavirus and investors looking for a safe haven.

Looking at the chart for Pharos Energy (PHAR) I wouldn’t blame you for coming to the conclusion that it is best avoided as it has been on a steady downwards trajectory for several years and with little sign of any relief.

Pembridge Resources (PERE) today issued a production update for the latest quarter up to the end of 2019, and based on the figures contained within that, many are struggling to understand why the company isn’t valued more highly.

A ShareProphets reader has requested that I take a look at Aminex (AEX), which is a bit of a blast from the past, as I can remember a time, quite a few years back, when this Tanzanian focussed company was popular with private investors and was going to be the next big thing in oil and gas.

Rockhopper Exploration (RKH) was one of the most popular shares on the AIM market at one time, but in recent years it has fallen totally out of favour and its share price has plummeted. It is nearly a decade since this oil explorer first announced a big discovery at its Sea Lion prospect in the North Falkland basin and its share price rocketed, hitting highs of in excess of 550p per share and a market cap in the hundreds of millions...

The share price of SolGold (SOLG) has taken a hit in recent months as a result of weak copper prices and political unrest in Ecuador, where its largest project is located, but if you are looking for an early stage mining company that has huge potential, then this could have presented a buying opportunity.

Hurricane Energy (HUR) is a company that I have been bullish on ever since first covering it as a buy back in June 2014, but things haven’t worked out particularly well for anyone who has been invested since that time. This is rather unfortunate, as from an operational point of view it has performed amazingly well, better than anyone could really have hoped for, and is an example of how an AIM oil explorer can sometimes succeed and take a large discovery all the way through to production. Unfortunately for longer term holders though, that has proved costly in terms of dilution to enable to company to retain 100% of its Lancaster field...

Often pump and dumps only last a matter of a few days or even hours, but occasionally when it is more than just small private investors involved they can go on for a long period of time, and that certainly appears to have been the case with Eurasia Mining (EUA)...

A tiny AIM mining company called Great Western Mining (GWMO) suddenly seems to be getting a bit of attention on social media, and as is so often the case with this type of company this just so happens to coincide with a placing.

It has been fascinating watching Sound Energy (SOU) play out over the past few years, but probably less so if you’ve actually been invested in it!

Eurasia Mining (EUA) is a company that I’ve been following for the past five years or so, but during that time, other than the occasional spike, the share price has done very little, and up until a few days ago you could have bought for around the same price as when I first covered it. The share price has more than tripled in the last few days though, to a current level of around 1.9p, following news that the company has engaged two large banks to help it assess the possibility of selling its assets and basically becoming a cash shell under AIM Rule 15...

There seem to be a number of mid-sized oil producers which have fallen out of favour with investors for quite some time now, and I’d definitely have to include North Sea-focussed EnQuest (ENQ) high up on that list...

The share price of Bahamas Petroleum (BPC) almost doubled following an announcement of progress on its ambitions to drill an exploration well next year, but is such a big rise really justified? Today there is a further ramptastic "technical update", world class prospect, yadda, yadda, yadda.

I’ve always been a fan of Parkmead Group (PMG), but after the last couple of RNSs there have been for this company, I can’t help wondering if my faith in it to succeed may have been misplaced.

Taking risks on exploration drills is generally a mugs game and a good way to lose money quickly, but just very so often if you choose carefully, it can really pay off. That was definitely the case with Eco Atlantic Oil and Gas (ECO) this morning when it announced a “major oil discovery” at the Orinduik block in offshore Guyana, when the Jethro-1 drill found 55 meters of net high quality oil pay in the lower tertiary sandstones...

There is often an argument for letting your winners continue to run, but in the case of many natural resource stocks listed on AIM you are often better off taking a healthy profit whilst it is on offer.

A couple of weeks ago I covered Sound Energy (SOU) and its recent disappointing drill results which appeared to cement its fall from grace as a favourite amongst private investors. At the time the share price was around 8.7p and I mentioned the fact that some of the placees from the recent equity fundraising of $2.7 million net at 10p would likely be looking to try and create a spike to sell into. Since then I have seen all sorts of rumours on social media, including one that a single shareholder took £3 million of placing shares – which is more than were actually issued!

TomCo Energy (TOM) seems to have become very popular all of a sudden with the share price almost doubling in the last few days.

Sound Energy (SOU) has proved to be a great example of why private investors shouldn’t get too far ahead of themselves and start ordering a new Ferrari, based purely on early results in any company drilling for oil and gas.

As is so often the case with oil and gas drills amongst the smaller companies, private investors built expectations around West Newton up to such a level that the actual results were never likely to live up to that.

I3 Energy (I3E) has had a bit of a bumpy ride of late, largely thanks to some untrue rumours which were being spread by certain individuals on social media, but the uncertainty has now been resolved following the latest news from the company...

Avesoro Resources (ASO) is a good example of what can happen to a share where there is a forced seller and generally low liquidity in the trading of the shares.

Large mining projects often take a long time and huge amounts of investment before they finally come to fruition and actually start producing the raw material and a revenue stream. During that time the share price can experience a lot of volatility and I remain to be convinced that the majority of PIs have the patience to invest long term in this type of company, and in some cases there is an argument for buying in closer to production once everything has been sorted out and financing has been finalised...

Coro Energy (CORO) was my pick this year during the Dragon’s Den session I was involved in at the UK Investor Show, and I also hold a small position here myself from around the current share price. Like many smaller companies in the oil and gas sector, it is an investment that I class as being speculative, hence not risking huge amounts of money in it at this stage – but there is also a lot of potential upside...

Gold, silver and copper are all metals that I am bullish on at the moment, so Azerbaijani miner Anglo Asian Mining (AAZ) fits the bill perfectly in covering all three of those.

If there were any prizes for being the worst performing company at the lower end of the market, then Canadian Overseas Petroleum (COPL) would definitely be up there as one of the contenders.

Lots of private investors talk about ‘investing’ in oil and gas exploration plays, but in most cases I would argue that ‘gambling’ is a far more suitable description and has a similar outcome, with the majority ending up losing money.

For junior resource companies which aren’t actually producing anything yet, larger movements in the share price are usually dictated by newsflow relating to the operational side of things, rather than by fluctuations in commodity prices. Jersey Oil and Gas (JOG) has gone through a period where not a lot has been happening drilling-wise, and as a result it has seen its share price bouncing around within a fairly tight range for this sort of stock...

These days I tend to avoid oil companies at the bottom end of the AIM market as usually the risks aren’t worth the rewards, and the majority of them do nothing but fleece investors over a number of years without ever achieving anything of note.

Asiamet Resources (ARS) is one that I have been wrong about in the past, as I wasn’t expecting the share price to drop as low as it has done, but that has been part of a more general trend amongst the AIM resource stocks that aren’t currently generating any revenue.

Sometimes it is hard to fathom why a company with strong fundamentals continues to be unloved by the market, and for me that is very much the case with SOCO International (SIA) at the moment, and has been for some time now. Lately the share price has slipped and is now trading at around the 88p level, and whilst it has bounced around 10% from the recent low of 80p that we saw, it still seems incredibly cheap at a market cap of just over £300 million, especially when you consider the current strength in oil prices.

In Africa things always tend to take far longer than people expect, and even more so when it comes to anything in the natural resources sector. Interest in, and the share price of, Tlou Energy (TLOU) seems to have waned and I think that has largely been as a result of some having far too optimistic timescales with regards to the company’s coal bed methane project at Lesedi, in Botswana.

With oil prices remaining buoyant and this trend looking likely to continue going forwards, there are still plenty of opportunities to invest in companies in this sector.

Spanish copper miner Atalya Mining (ATYM) has seen its share price drop back recently, but then the situation has been similar on most producers in this sector and has come as a result of weakness in the commodity price rather than anything company specific.

All of the focus has been on Hurricane Energy’s (HUR) Lancaster licence, and although its other assets looked very good I wasn’t expecting further progress quite so quickly.

Andalas Energy (ADL) has undergone a change of management and has also switched its asset focus in an attempt to turn things around from the disaster it has been ever since it changed its name from CEB Resources back in late 2015.

When Bahamas Petroleum (BPC) announced a confidentiality exclusivity agreement back in May I expressed scepticism as to whether that would actually result in any sort of farm-out deal ultimately being concluded.

Regular readers of ShareProphets will know that I am usually very wary of any natural resources company that isn’t actually producing anything, especially if they are valued in the hundreds of millions.

These days it often seems to be the case that if you are interested in a new IPO, it is better to wait until that company has listed and the dust has settled, as often you will get a chance to buy in cheaper than those taking part in the initial fundraise. Block Energy (BLOE) looks to be one such outfit and the timing of its listing looks good, with the oil sector showing strength, plus there is plenty of potential from gas as well.

Oil exploration is very different to the boom we had back in 2010 in terms of the share price movements that we see for companies that are engaged in drilling.

At times in the lower end of the natural resources sector it seems as though the worse the company is, the more money private investors are prepared to put into it.

It often pays to be wary of companies that haven’t lived up to expectations in the past, but there are exceptions to that if the company fundamentally changes, especially if conditions in the market in which it operates also improves at the same time. 

Jangada Mines (JAN) suddenly seems to have become very popular and has seen a significant share price rise in the past few weeks, but I am left wondering if that is just a coincidence or just another pre-placing spike which we see on so many of these small resource outfits.

When news came on Friday that trading in the shares of Weatherly International (WTI) had been suspended and that the company was being placed into administration, unfortunately it didn’t really come as much surprise to me.

I’m surprised by the seeming lack of interest amongst private investors when it comes to RockRose Energy (RRE), as even amongst those who focus on oil and gas stocks, this isn’t a company which you see being mentioned on social media and the bulletin boards.

There is fairly limited choice when it comes to UK listed gold producers, so it is good to see another option in the form of Hummingbird Resources (HUM), which has just declared that commercial production has commenced at its Yanfolila mine.

Some positive sentiment finally seems to be returning to UK offshore oil and gas companies, and Cluff Natural Resources (CLNR) could be in a position to benefit from that. Things have been pretty dire for the North Sea focused company, and although its assets revolve around gas, which has performed badly in comparison to oil of late, any renewed interest in the area should be of benefit.

When it comes to anything on the operational front amongst smaller companies in the oil sector you tend to pretty much expect some delays and the directors are often over optimistic when it comes to timelines for delivering certain milestones.

Given what is going on in the markets and world in general at the moment, it would seem silly not to have gold featuring somewhere in your portfolio.

Cairn Energy (CNE) is one of a number of oil producers which look to be unloved by the market currently, but I would expect that to change in the future. In recent years the company has had impressive amounts of reserves on its book, but has now moved to the stage where it is producing from several of those fields, and with more to come in the near future.

Canadian Overseas Petroleum (COPL) is a company which I have been pretty negative on in recent times, and certainly nothing has happened to change my view on it, certainly in the shorter term.

Sometimes investing takes a lot of patience, but if you are in at a fairly early stage and are prepared to hold long term, then you can reap the rewards whilst others are left wondering why they never bought any shares whilst the price was still relatively cheap.

Those who have been around the AIM market for a while will probably remember a company called Range Resources (RRL), and its infamous CEO Peter Landau.

The typical life cycle of a small mining company from initial discovery of a resource through to eventual production tends to feature lots of peaks and troughs along the way as various stages are reached.

Hurricane Energy (HUR) remains a favourite of mine amongst the AIM listed companies which have appraised assets and booked reserves, and I think it is one of the few which will make it into production in the near future, and has the potential to grow much larger.

Often the valuation of resource companies on the AIM market seems to revolve more around how popular they are amongst private investors, than having much to do with the progress that they have made, and how well they are likely to do in the future.

I’m always wary of companies that have seen a large hike in share price, especially smaller ones in the natural resources sector, but in some cases the rise would appear to be justified by recent news.

Regular readers here will know that I’ve not exactly been a big fan of Ferrum Crescent (FCR), but there could now be a slight glimmer of hope for anyone trapped in this serial underperformer.

Spotting a placing coming on the smaller shares isn’t always that hard, and is usually a combination of the company getting to a point in time where typical cash burn suggests that funds will be low, and perhaps even more importantly, taking note of those who suddenly seem very keen on that particular company!

Canadian Overseas Petroleum (COPL) is a company that I have followed for a while now and recently I have noticed it getting a fair bit of attention again – certainly as much as we’ve seen since the failed drill in Liberia back in late 2016.

Gulf Keystone Petroleum (GKP) was one of the most hyped up oil companies that I have ever seen during my time in the markets, and although that all ended in tears, I think it could be worth another look now as it has changed a lot since those days.

Although you can’t currently trade shares in Central Asia Metals (CAML), given my bullishness on the company I felt that I should take a look at the current situation following news of a suspension in trading at the start of the week.

Copper prices have remained volatile but continue to push higher, and if this continues it will be a very bullish signal for both producers and those looking to bring new projects online.

On the AIM market these days it seems as though many would far rather buy into the latest pump and dump on a piece of junk, than invest in a company that is actually running its business properly and making money. The problem with putting your money into junk is that at some point true value normally shines through and the resultant share price crashes can be spectacular.

Nu-Oil and Gas (NUOG) is all the rage at the moment amongst PIs, but I’m finding it hard to get quite so excited about its prospects and am getting a feeling of déjà vu when I look back at some of the old Enegi Oil announcements.

Hurricane Energy (HUR) is a company that I have followed closely, and have been invested in at various times, since it first floated on the AIM market, and it has come a long way since then.

Shares in Jubilee Platinum (JLP) have taken a bit of a battering in recent months, but I can still see plenty of upside here on any sort of positive reversal in platinum prices, and it is also worth remembering that other platinum group metals have been more robust.

Private investors often seem to have very short memories, and although many have previously been badly burned by putting money into Mosman Oil and Gas (MSMN), some were flocking back into the company again today, sending its share price rocketing.

Oilex (OEX) took a big hit to its share price this week following news of an unsuccessful workover at two of its oil wells, and it is hard to see how the company is going to turn things around.

I recently wrote a piece HERE expressing my surprise that the share price of Ariana Resources (AAU) had failed to react positively to good news, so it probably shouldn’t have come as a surprise that a decent update on its resource actually resulted in the share price closing slightly lower.

Chariot Oil and Gas (CHAR) has begun to get my attention again recently as it has plenty going on operationally during the next year or so, and could well become a popular share to be in once again.

Valuing small resource companies can be difficult, and often they will appear to be far cheaper than they really are. The bulletin boards, Twitter, etc are full of people extolling the virtues of the companies that they are invested in and pointing out that they should be worth far more than what the share price currently reflects.

It was great to see Hurricane Energy (HUR) announcing the completion of another successful well at its Lancaster field, as it has been a company that I’ve been a fan of for sometime.

Lekoil (LEK) has had the misfortune to be tainted by the whole Afren (AFR) saga, but looks to be making good progress. Its share price had been on the decline anyway thanks to the falling oil price, but it really took a hit at the start of this year when the full extent of the problems that Afren were having came to light.