3 Small Cap Oil Stocks Set to Slide?

Energy Information Administration (EIA) noted that a rebalancing act could tip over due to demand weakening

SmallCapPower | July 14, 2016: WTI crude oil traded deep in the red yesterday following a smaller-than-expected U.S. drawdown on crude inventories. This could be an early sign of a tipping point in the rebalancing act that has thus far remained true in the market. In any case, we believe there are still overvalued and debt-laden oil stocks that investors should resist buying, which could include the ones on our list today.

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SciVacShaMaran Petroleum Corp. (CVE:SNM) – $0.07
Oil & Gas Exploration and Production

ShaMaran Petroleum Corp. is an oil development and exploration company that is engaged in the business of oil and gas exploration and development and is in the pre-production stages of an exploration and development campaign in respect of the Atrush Block production sharing contract (Atrush Block PSC) related to a petroleum property located in the Kurdistan Region of Iraq (Kurdistan). The Phase I of Atrush field development consists of installing and commissioning production facilities with approximately 30,000 barrels of oil per day (bopd) capacity and the drilling and completion of over five production wells to supply the production facility.

  • Market Cap: 125,232,001
  • Revenues: 0
  • Operating Income: -342,843,956
  • Total Debt to Equity: 114%

SciVacSterling Resources Ltd. (TSE:SLG) – $0.90
Oil & Gas Exploration and Production

Sterling Resources Ltd. is a Canada-based energy company engaged in the acquisition of petroleum and natural gas rights, and the exploration for, and the development and production of, crude oil and natural gas. The Company’s geographical segments include Canada, United Kingdom and Other International. The United Kingdom and other international locations are involved in exploration and development operations. Other international comprises operations in France and the Netherlands. Its assets include Breagh and Cladhan.

  • Market Cap: 131,760,139
  • Revenues: 77,092,422
  • Operating Income: -99,101,141
  • Total Debt to Equity: 108%

SciVacPengrowth Energy Corp. (TSE:PGF) – $2.35
Oil & Gas Exploration and Production

Pengrowth Energy Corporation is engaged in the production, development, exploration and acquisition of oil and natural gas assets. The Company is focused on further developing the Lindbergh Thermal Project, located in East Central Alberta, near Cold Lake. Its principal conventional operations include Greater Olds/Garrington Area, where the Company holds a continuous land base with over 800 gross sections of Cardium-access rights, infrastructure and operatorship; Swan Hills Trend, a conventional oil resource , which provides it with opportunities to put its technical experience of carbonate reservoirs to work on its operated interests in Judy Creek, Carson Creek, Deer Mountain, Virginia Hills and Sawn Lake, where Pengrowth has control of the infrastructure and Bernadet Montney, where it has more than 50 gross sections of Montney land with liquids content.

  • Market Cap: 215,285,203.21
  • Revenues: 1,046,600,000
  • Operating Income: -878,800,000
  • Total Debt to Equity: 105%

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