Five ASX penny stocks in energy sector that stood out this year


  • The ASX 200 Energy index notched up 4.9% return in the week ended 24 September 2021.
  • A sharp recovery in crude oil demand this year has led to a significant demand for oil exploration companies.
  • Some penny stocks in the energy space that have more than doubled this year are DOR, RNU, AGE, etc.

The energy sector performed significantly well last week. The ASX 200 Energy index (XEJ) bagged a meaningful return of 4.9% in the week ended 24 September 2021. On 27 September, the index is up another 1.68%, continuing its 5-day gaining streak.

5-day comparative chart of RNU (Green), DOR (Purple), AGE (Blue), NEW (Red) ROG (Yellow) with XEJ (Mustard)

Image Source: Refinitiv Eikon; Research: Team Kalkine

A major factor behind this rally in energy stocks has been the sharp recovery in crude oil demand. However, there are a few ASX penny stocks that have delivered a significant return this year, beating the energy index hands down. Let’s have a brief look at those five ASX penny stock in the energy space.

Read More: Five strong ASX financial penny stocks for the year

  1. Renascor Resources Limited (ASX:RNU)

Renascor Resources has a market capitalisation of AU$283.5 million. The company is focused on the exploration of economically viable minerals. In September 2021, the Australian government awarded a major project status to Renascor’s planned Siviour Battery Anode Material operation in South Australia.

The RNU share price has delivered a massive return of 1400% this year and is currently trading at AU$0.15, as of 3:00 PM AEST.

  1. Doriemus PLC (ASX:DOR)

Doriemus is a British energy company listed on the ASX and has a market capitalisation of AU$32.63 million. In 1HFY21, the company raised AU$3.34 million via a private placement of shares and rights issue.

The loss after tax reduced significantly to AU$324,000, from 568,000 in 1HFY20. The DOR share price has rallied to AU$0.27 in 2021, delivering a total year-to-date return of 575%.

  1. Alligator Energy Limited (ASX:AGE)

Alligator Energy’s share price picked up pace in August this year, rallying to the current price of AU$0.068. The return for 2021 so far has been a hefty 580%. This year, the main focus of the AU$212 million energy exploration company has been to complete the Samphire Uranium Project’s acquisition.

Additionally, Alligator Energy has continued to evaluate additional exploration and resource project opportunities within the uranium and energy metals space.         

  1. Norwest Energy NL (ASX:NWE)

Norwest Energy is focused on exploration of hydrocarbon resources and has a market capitalisation of AU$142.18 million. In the recent annual report for FY21, the company’s EP368 Joint Venture secured the Ensign 970 drilling rig to drill the Lockyer Deep-1 conventional gas prospect.

The company’ earnings per share (eps) has been reduced to 0.01 cents per share (cps) from 0.19 cps in 2020. The NWE share price has delivered a massive YTD return of 140%; the stock last traded at AU$0.024.

  1. Red Sky Energy Limited (ASX:ROG)

Red Sky Energy is an Australian energy explorer which also looks out for solar opportunities. This AU$53 million company reported a net loss of AU$362,449 in 1HFY21, as compared to a net loss of AU$333,976 in the previous corresponding period.

In July 2021, the company received an approval from the government of South Australia to commence operations at its Killanoola Oil Project located in South Australia. The ROG share price is up 400% this year, with its last trading price recorded at AU$0.01 on 27 September, 3:00 PM AEST.

Bottom Line

A sharp recovery in crude oil demand has propelled its price above US$75 a barrel (WTI), a ~55% spike this year, which in turn has led to a significant demand for oil exploration companies. As a result, a few highly volatile penny stocks in the energy space have raked in multi-bagger returns.

However, one should not get carried away looking at these lucrative returns and must always execute due diligence before diving into the penny stocks space.           

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