MAY & PCL: Two ASX energy stocks under $1 with over 400% YTD gains

3 min read | March 31, 2022 02:12 PM AEDT | By Aayush

MAY & PCL: Two ASX energy stocks under $1 with over 400% YTD gains

Highlights

Crude oil prices have been on a tear since Russia declared a war on Ukraine.

Higher oil prices help oil explorers to enjoy higher margins over oil production.

MAY and PCL are two ASX energy stocks that have surged over 400% this year so far.

Since the declaration of war by Russia on Ukraine, prices in the energy markets have been on a tear. Brent crude oil, which was trading around US$97 per barrel, skyrocketed to around US$139 per barrel as the war intensified.

ASX penny stocks to buy 2022

As many companies were taking a hit over concerns of rising inflation due to higher oil prices, energy companies were set for enjoying higher margins, which was also discounted in their share price. Let us have a look at three ASX penny stocks in the energy space that have become multi-baggers in just three months into 2022.

Melbana Energy Limited (ASX:MAY)

Melbana Energy is an independent oil and gas exploration company listed in Australia, having a wide portfolio of attractive exploration projects in Australia and Cuba. The company, which has a market capitalisation of over AU$338 million, recorded a multifold increase in revenue to AU$1.07 million in FY21, compared to a mere AU$0.01 million a year ago.

May shares have rallied 22.5% to trade at AU$0.145, as of 12:30 PM AEDT on Thursday. However, the year-to-date return of the stock (as of 30 March 2022) is an astonishing 445.5%, all thanks to burgeoning oil prices.

Pancontinental Energy NL (ASX:PCL)

Another company that has delivered a massive 400% return this year is Pancontinental Energy. It is also targeting high-quality conventional oil and gas projects, having operations in Queensland, Australia and Namibia, Africa. The company has a market capitalisation of AU$35.77 million and its portfolio boasts of large offshore oil projects.

In 2022 so far, the PCL share price has surged over 400% to trade at AU$0.05 on 30 March 2022. Today, the shares are trading flat, with a volume of over 15.3 million shares. Another catalyst for the stock was a major light oil discovery in the Venus-1X well offshore Namibia. Notably, Pancontinental is the second largest net acreage holder in this region.

Bottom Line

Oil stocks have been on investors’ radar since last month, owing to its continuous rally amid Russia’s invasion on Ukraine. Investing in such commodity-based businesses must be done with caution, especially in current times when the volatility in the energy markets is sky-high.

Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Pty Ltd (Kalkine Media, we or us), ACN 629 651 672 and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated as or found to be necessary.