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Highlights
- Amid surging oil prices, the TSX energy index has gained nearly 62 per cent in 2022.
- Suncor (TSX:SU) stock has risen by over 244 per cent in roughly 19 months since it fell to C$ 15 apiece at one point in October 2020.
- PetroTal Corp (TSXV:TAL) and Lucero Energy Corp (TSXV:PSH) have seen notable stock price growth in the last 52 weeks.
Amid surging oil prices, the TSX energy index has gained nearly 62 per cent in 2022. Suncor (TSX:SU) stock, for one, has risen by over 244 per cent in roughly 19 months since it fell to C$ 15 apiece at one point in October 2020.
Beside Suncor, some junior oil stocks like PetroTal Corp (TSXV:TAL) and Lucero Energy Corp (TSXV:PSH) have also seen notable price growth in the last 52 weeks.
Notably, the West Texas Intermediate (WTI) crude futures was trading at US$ 114.21 at 11:41 AM EST on Friday, May 27, while the Brent crude futures was hovering around US$ 117.98.
Let’s glance at five TSXV stocks under C$ 6 that investors can explore if they are looking to invest in junior oil stocks.
1. PetroTal Corp (TSXV:TAL)
PetroTal Corp produced 8,966 barrels of oil per day (bopd) in fiscal 2021, noting a growth of 58 per cent from the previous year. The TSXV oil company also reported a rise of 48 per cent in sales to 8,449 bopd in 2021 compared to 2020.
TAL stock swelled by nearly 198 per cent in 12 months. Stocks of PetroTal Corp had a Relative Strength Index (RSI) value of 63.66 on May 27, according to EODHD/Others. The RSI represents the stock’s buying and selling conditions in the stock market.
2. Reconnaissance Energy Africa Ltd (TSXV:RECO)
Reconnaissance Energy Africa is a small-cap oil company with petroleum licenses spanning about 8.5 million contiguous acres. The junior oil company recently extended its partnership with NAMCOR to buy half of its 10 per cent carried participating stake in a petroleum exploration license of about 6.3 acres.
RECO stock was almost 19 per cent up from a 52-week low of C$ 4.38 (November 1). However, the oil stock plunged by about 38 per cent year-over-year (YoY). The RSI value of RECO stock was 38.43 on May 27, as per EODHD/Others findings.
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3. CGX Energy Inc (TSXV:OYL)
CGX Energy has been exploring oil and gas resources in onshore and offshore Guyana since 1997, according to its website. The junior energy company also said it drilled three exploration wells on the Berbice Block in onshore Guyana and two exploration wells on the Corentyne Block offshore Guyana.
Stocks of CGX Energy spiked by almost 46 per cent in 12 months. EODHD/Others suggests that OYL stock held an RSI value of 44.01 on May 27.
4. Africa Energy Corp (TSXV:AFE)
This energy firm, as they name may indicate, has oil assets in South Africa and Namibia. AFE stock climbed roughly eight per cent in the past month. On a year-to-date scale, the oil stock grew by over 18 per cent. As per EODHD/Others, AFE’s RSI value stood at 56.19 on May 27.
Africa Energy’s return on equity (ROE) of roughly nine per cent is calculated by comparing its net profit to shareholders’ equity to assess its financial performance.
5. Lucero Energy Corp (TSXV:PSH)
PetroShale Inc changed its name to Lucero Energy Corp on May 24, and since May 26, its stocks are trading under the ticker LOU.
Lucero Energy recorded a net profit of C$ 5.88 million in Q1 FY2022 compared to a loss of C$ 44.42 a year ago. Lucero Energy also reduced its net debt to C$ 121.09 million in the latest quarter compared to C$ 318.28 million in Q1 2021.
PSH stock galloped by nearly 232 per cent in the last 52 weeks. PSH’s RSI value was 44.92 on May 27, according to EODHD/Others data.
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Bottomline
The S&P/ TSX Venture Energy (Sector) Index has fallen by roughly six per cent in 2022. However, it has still outperformed the S&P/ TSX Venture Composite Index, which plummeted by over 25 per cent YTD. Investors looking for relatively cheaper options amid soaring energy prices can explore these TSXV energy stocks listed above.
Please note, the above content constitutes a very preliminary observation based on the industry, and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.
