Here are December’s top 10 oil & gas small caps
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Oil prices enjoyed a boost in December with the benchmark Brent crude rising 8.3 per cent over the month to $US66 ($95) per barrel at the end of the month.
Likewise, the West Texas Intermediate crude rose 9.6 per cent to $US61.06 per barrel.
Much of the gains were attributed to positive sentiment on the first phase of the China-US trade deal.
So who were some of the biggest oil and gas gainers in the small cap space in December?
Last year’s successful West Erregulla-2 and Beharra Springs Deep gas wells in the Perth Basin have proved to be a boost for Norwest Energy, which will be participating with operating partner Energy Resources in the drilling of the Lockyear Deep gas prospect in the first half of 2020.
Lockyer Deep targets the same conventional Kingia/High Cliff targets that produce gas at Waitsia, while the Kingia produced a very neat 69 million cubic feet of gas per day during testing at West Erregulla-2.
At Lockyer Deep, the Kingia/High Cliff targets could hold up to 1.12 trillion cubic feet of gas.
Additionally, the company noted in late December that the success of Beach Energy’s (ASX:BPT) Beharra Springs Deep well had mitigated the primary geological risk for the Lockyer Deep prospect, increasing its geological chance of success to 38 per cent.
XCD Energy picked up additional oil and gas leases in the highly prospective Nanushuk oil fairway on Alaska’s North Slope in mid-December.
The leases are adjacent to and complementary to the company’s existing leases, bringing its total portfolio up to 195,373 acres.
Meanwhile, Sacgasco is gearing up to spud the Borba 1-7 well in California after receiving a drilling permit from the California Division of Oil, Gas and Geothermal Resources.
Borba is expected to have high pressures in the target reservoirs, which should result in high gas flow rates.
There is access to gas infrastructure and a major gas market in California, which is seven times larger than the Western Australian gas market.
Drilling of Borba 1-7 is expected to start in late January or early February.
Triangle Energy’s growth in December is due in no small part to bringing production at its Cliff Head oil field in the offshore Perth Basin up to 1,028 barrels per day.
This was achieved following the installation of a replacement electric submersible pump for the CH-13 well.
Here are the top 10 oil and gas small caps for the month of December: