Oil prices were on a roller coaster ride in September with the benchmark West Texas Intermediate (WTI) crude price surging to a high of US$62.90 per barrel in the middle of month after following drone attacks on Saudi Arabian oil processing facilities.

 

September Oil Prices – Brent Crude in White, WTI in Orange

However, the world’s largest oil producer was quick to respond that the impact of the attack on its oil supplies would not be anywhere near as big as some had feared and the WTI gradually slid over the rest of the month to close at US$54.07 per barrel.

This was due in no small part to the ongoing US-China trade war, a build in US oil inventories in the week ending 20 September and rising US oil production.

In gas dominated Australia, liquefied natural gas exports have risen 22 per cent to a record 75 million tonnes for the 2018-2019 financial year, according to consultancy EnergyQuest.

So who were some of the biggest oil and gas gainers in the small cap space in September?

#1 Oilex (ASX:OEX) +100%

Oilex has resolved its dispute with India’s Gujarat State Petroleum Corporation (GSPC) over its Cambay production-sharing contract. GSPC has started the formal process to sell its 55 per cent stake in the project as part of a broader sell-off of its Indian exploration and production assets.

The company said the sale of GSPC’s stake would facilitate the recommencement of an active work program to exploit the large gas resource at Cambay.

Oilex also entered into an agreement to acquire all of Senex Energy’s petroleum retention licences in the Northern Oil and West Gas fairways of the Cooper-Eromanga Basins in South Australia along with a potential deal to acquire stakes in three gas discoveries in East Irish Sea.

#2 Winchester Energy (ASX:WEL) +63%

Recovering oil is always a positive, which is no doubt the reason why Winchester is amongst our top risers in September.

The company announced on 10 September that it had flowed oil at a rate of about 125 barrels per day after completing fracture stimulation work on two of the four target intervals at its Arledge 16#2 well in Texas.

Winchester will now adjust the choke size, which controls the amount of fluids being produced, to optimise the oil flow rate.

Production has since risen to between 200 and 300 barrels of oil per day in October.

#3 Liquefied Natural Gas (ASX:LNG) +61%

Liquefied Natural Gas received a shot in the arm during the middle of September after reaching a deal to supply Delta Offshore Energy to supply 2 million tonnes of the supercooled gas to Vietnam’s Bac Lieu province, where a new 3200 megawatt combined cycle gas power plant is being constructed.

The project will start in 2023 pending government approvals and the agreement will last for 20 years with options to extend.

 

Here are the top 10 oil and gas small caps for the month of September.

Scroll or swipe to reveal table. Click headings to sort. Best viewed on a laptop.

Ticker Name Price Sept 01 Price Sept 30 Total Return September % Market Cap
OEX OILEX 0.002 0.004 100 $11.5 million
WEL WINCHESTER ENERGY 0.034 0.066 63 $36.1 million
LNG LIQUEFIED NATURAL GAS 0.165 0.250 61 $144 million
ROG RED SKY ENERGY 0.002 0.003 50 $4.7 million
BAS BASS OIL 0.002 0.003 50 $8.8 million
LKO LAKES OIL 0.001 0.002 50 $50.1 million
PVD PURA VIDA ENERGY 0.017 0.023 42 $7.9 million
TPD TALON PETROLEUM 0.002 0.002 25 $4.4 million
TAP TAP OIL 0.105 0.125 19 $53.2 million
AGE ALLIGATOR ENERGY 0.003 0.004 17 $3.6 million
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