4 Oil Penny Stocks Likely to Be Hurt Most by OPEC

OPEC’s recent meeting saw no production halt in the oversupplied global energy market, impacting the price of oil and ultimately these oil penny stocks

SmallCapPower | June 7, 2016: OPEC’s unity throughout the fall of global oil prices has taken a hefty hit. Indeed, several constituents of the 13-nation colluding organization disagreed with one another. OPEC’s history has been relatively unified on increasing or decreasing production. However, more recent tensions between Saudi Arabia and Iran have led to disagreements. Iranians have expressed interest in continuing their outflow of supply and regaining market share, which conflicts with any form of production cap that OPEC, producer of 40% of the word’s crude oil, puts on the table. Crude-oil prices fell on OPEC’s inaction, and this will likely hurt the prospects for these debt-laden oil penny stocks, should the bearish sentiment continue.

Long Run Exploration Ltd. (TSE:LRE) – $0.47
Oil & Gas Exploration and Production

Long Run Exploration Ltd. is a Canada-based intermediate oil and natural gas company that is engaged in the development, exploration and production of oil and natural gas in the Western Canadian Sedimentary Basin. The Company’s activities are concentrated in its core areas, which include the Peace River Montney, the Redwater Viking, the Deep Basin Cardium and the Boyer Bluesky.

• Market Cap: 90,343,069.12
• Revenue: 256,047,000.00
• Debt to Capital: 90%

Perpetual Energy Inc. (TSE:PMT) – $1.45
Oil & Gas Exploration and Production

Perpetual Energy Inc. (Perpetual) is a Canada-based oil and natural gas exploration and production company engaged in finding, developing, producing and marketing natural gas, natural gas liquids (NGL), oil and bitumen. Perpetual’s business consists of operations in Alberta focused on exploring and developing the natural gas and NGL resource opportunities in the deep basin in west central Alberta; the exploration for and extraction of heavy oil in eastern Alberta; the development and production of shallow natural gas from mature producing regions in eastern Alberta; bitumen opportunities in northeast Alberta, and interest in a commercial gas storage business through the operation and ownership in a gas storage facility at Warwick in east central Alberta.

• Market Cap: 75,856,411.86
• Revenue: 130,364,000.00
• Debt to Capital: 87%

Strategic Oil and Gas Ltd. (CVE:SOG) – $0.15
Oil & Gas Exploration and Production

Strategic Oil & Gas Ltd. (Strategic) is a Canada-based oil and gas exploration and production company. Its operations are focused on light oil development in northern Alberta. Strategic also operates oil and gas production and processing facilities at Bistcho, Alberta and Cameron Hills in the Northwest Territories, as well as oil properties in southern Alberta. Strategic has total proved and probable oil equivalent reserves of around 13,925 thousand barrels of oil equivalent (Mboe), including approximately 10,218 thousand barrels of oil (Mbbl) of light and medium crude oil, 133 Mbbl of heavy oil and 21,444 million cubic feet (MMcf) of natural gas.

• Market Cap: 215,285,203.21
• Revenue: 29,084,000.00
• Debt to Capital: 73%

Calfrac Well Services Ltd. (TSE:CFW) – $2.19
Oil Related Services and Equipment

Calfrac Well Services Ltd. is a provider of specialized oilfield services. The Company operates through four geographical segments: Canada, the United States, Russia and Latin America. Its services include hydraulic fracturing, coiled tubing, cementing and other well stimulation services.

• Market Cap: 114,570,744.63
• Revenue: 1,110,960,000.00
• Debt to Capital: 60%

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