Seplat (SEPL), Zenith (ZEN) & Gore Street (GSF): 3 energy stocks to buy

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 Seplat (SEPL), Zenith (ZEN) & Gore Street (GSF): 3 energy stocks to buy
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Highlights

  • Seplat Energy has confirmed that it is in talks with energy giant ExxonMobil, to acquire its Nigerian shallow water business.
  • Zenith Energy’s shares rose by over 7 per cent on Monday after it signed an option agreement with Nigerian oil and gas company Noble Hill Network Ltd.
  • Gore Street Energy Storage reported securing an additional allocation capacity for its  Kilmannock asset in the Republic of Ireland.

Oil and gas companies and mining firms have raised about £1.1 billion worth of fresh equity in the first few months of this year, according to reports citing UK chartered accountancy group UHY Hacker Young’s research.

It is higher by a whopping 307 per cent from the £270 million of equity raised in 2020. The rise has been attributed to oil prices reaching multi-year highs (and also as metal prices have surged) amid a strong economic bounce back following the pandemic.

Oil prices have been volatile recently and witnessed a good rebound on Monday after plunging last week over the fear of Omicron variant. However, they are down again. Brent oil Feb 22 futures were down by 2.47 per cent at US$ 71.32 per barrel as of 07:14 AM BST on Tuesday after media reports emerged over the efficacy of vaccines against the Omicron variant.

Oil investors are also awaiting the outcome of a key OPEC meeting scheduled for later this week to take further move.

For energy space investment, one can consider these 3 FTSE listed energy-focused stocks:

  1. Seplat Energy PLC (LON: SEPL)

Main market listed firm Seplat Energy is a Nigeria based oil and gas business.

The company confirmed recent speculative media reports on Monday, stating that Seplat, along with a partner, is currently in talks with energy giant ExxonMobil to acquire its Nigerian shallow water business.

The firm added that the talks may or may not lead to an outcome as they are still in the preliminary stages.

SEPL share price and volume

Image source: Refinitiv

Seplat Energy’s shares ended up by 2.56 per cent, at GBX 80.00 on Monday, 29 November.

The company’s one-year return to shareholders stood at 33.78 per cent, and it had a market cap of £458.92 million as of 29 November.

  1. Zenith Energy Ltd (LON: ZEN)

Zenith Energy is an international energy company listed on the main market of the LSE.

The company said on Monday that it had entered into an option agreement with Nigeria based oil and gas firm Noble Hill Network Ltd.

Noble Hill is the solitary holder of a risk service contract for developing the North-West Corner of OML 141 located in Nigeria. The area has been termed as the risk service contract area (RSCA).

The option agreement will help Zenith jointly develop the above-mentioned RSCA with Noble Hill.

 ZEN share price and volume

Image source: Refinitiv

Zenith Energy’s shares ended higher by 7.14 per cent, at GBX 1.13 on 29 November.

The company’s one-year return to shareholders stood at 266.45 per cent, and it had a market cap of £18.82 million as of Monday.

  1. Gore Street Energy Storage Fund PLC (LON: GSF)

Gore Street Energy Storage Fund is an energy storage fund.

The fund published its portfolio update on Monday, which included an updated regarding Kilmannock its Republic of Ireland asset, which is currently under construction.

The Kilmannock asset secured an additional volume allocation of 90 MW to its allocated grid connection capacity, further to its already secured allocation of 30MW.

GSF share price and volume

Image source: Refinitiv

Gore Street’s shares ended higher by 0.43 per cent, at GBX 116.50 on 29 November.

The company’s one-year return to shareholders stood at 6.88 per cent, and it had a market cap of £400.24 million as of Monday.

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