From BAS to OEL: ASX energy stocks to keep on watchlist

By - Ankur Jaiswal


  • Crude oil breached the US$75/barrel level and made a low of US$72.7/barrel in the first week of 2023.
  • The recent surge in coronavirus cases and gloomy economic sentiments are some of the reasons for the gloomy performance of the world's most traded commodity.

Crude oil has been in the spotlight for the last few days. Crowned as the most traded commodity globally, crude has seen a massive meltdown this week, breaching the US$75/barrel level and making a low of US$72.7/barrel. The price, however, corrected a bit on Thursday and is currently hovering around US$74/barrel.

The gloomy sentiments back the dour view of the commodity in the top crude importer China due to the recent surge in coronavirus cases.

On top of that, the hawkish rate hikes by major central banks have also pointed towards a possibility of a near-term recession, thus diminishing the near-term demand outlook. This has also negatively impacted the commodity's price, which saw more than US$110/barrel levels during May 2022.

Amidst this highly volatile situation, let’s look at a few ASX-listed oil and gas stocks that have been advancing their projects.

Bass Oil Limited (ASX:BAS): The ASX-listed oil producer holds a majority interest in Indonesia’s South Sumatra Basin and Australia’s Cooper Basin. Bass Oil achieved a production optimisation of 30% from its Worrior and Padulla fields in late-November by mobilising a low-cost wireline program.

The production level went to 105 barrels of oil per day (bopd) from 80 bopd. The company has mobilised a wireline unit to perform a series of low-cost zone changes and pump refurbishments.

Triangle Energy (Global) Ltd (ASX:TEG): The Perth-based oil producer and explorer is the operator of the producing Cliff Head Oil Field, holding an interest of 78.75%. Along with this, Triangle fully owns the Perth basin-based L7 production permit and EP 437 exploration permit. The company’s portfolio also includes a stake in ASX-listed entity State Gas Ltd.

Recently, the AB Paloma tanker from Triangle’s Cliff Head Joint Venture (CHJV) unloaded 52,900 barrels of oil at a Thailand refinery. The venture is expected to be paid for the delivery in early February 2023. The company believes that the successful delivery confirms the management and progress of the joint venture.

Pancontinental Energy NL (ASX:PCL): The ASX-listed oil and gas exploration player has received a second one-year extension of the offshore Petroleum Exploration Licence 87 (PEL 87). The extension was granted, to the company, along with its joint venture partners Custos and Namcor, by the Namibian mines and energy minister.

With this development, the company gained licence access till 23 January 2024. As per Pancontinental, it will be using the extension period for executing an extensive 3D seismic survey.

In addition to the extension, the ministry has also exempted an otherwise obligatory 50% relinquishment of the licence area. The company now has access to 10,970 square kilometres until the expiry of the extended term.

TMK Energy Limited (ASX:TMK): The ASX-listed firm is the operator of the Gurvantes XXXV Coal Seam Gas Project, which sits within Mongolia. The company holds an interest of 67% in this project.  

TMK has secured funding for a pilot well program at Gurvantes XXXV CSG Project. Talon Energy Limited (ASX:TPD) will be funding 100% of the program up to US$3.15 million and will take a 33% working interest in the project. The program is expected to commence in early 2023.

Otto Energy Limited (ASX:OEL): The oil & gas player believes that it is growing in the Gulf of Mexico onshore/offshore basin. In its recent announcement, the company talked about the excellent operational results registered in 2022.

Otto highlighted that the cumulation of outstanding operational numbers and strong pricing for oil and gas in 2022 had produced one of the best financial results in its history.

Based on these numbers, the company became debt and hedge-free from 1 October 2022.

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