With global oil prices moving higher, these TSX-listed oil penny stocks that are earning positive operating income are set for even more success
SmallCapPower | June 2, 2016: Recent developments in the global oil patch have resulted in a depletion of the supply glut we faced last year and early in 2016. Namely, there has been a strong pullback in production from Canada and Nigeria. On the other side of the equation, demand in India and China, the two fast-growing nations in the East, seems to be ramping up. This has combined to push prices to nearly US$50 a barrel. The longer oil prices remain at this level, the better the prospects for certain Canadian penny stocks involved in the energy business, such as the ones on our list today. Specifically, companies with operations that are already generating operating income (in the last 12 months) are likely to outshine the laggards in the current oil-price environment.
Granite Oil Corp. (TSE:GXO) – $7.21
Oil & Gas Exploration and Production
Granite Oil Corp., formerly DeeThree Exploration Ltd., is a Canada-based oil producer based in Calgary, Alberta with lands and operations located in southern Alberta. The Company is engaged in the exploration for and exploitation, development and production of oil and natural gas. Its Alberta Bakken Properties are located in southern Alberta, approximately 70 kilometers south of Lethbridge. This property consists of an average working interest of approximately 100% in over 393,453 gross (391,633 net) undeveloped acres and approximately 54,434 gross (52,140) net developed acres.
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Market Cap: $221.4 Million
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Total Revenue (LTM): 51,083,000
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Operating Income (LTM): 14,364,700
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Total Debt (LFQ): 39,014,000
Perpetual Energy Inc. (TSE:PMT) – $1.40
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.
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Market Cap: $73.3 Million
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Total Revenue (LTM): 130,364,000
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Operating Income (LTM): 73,829,000
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Total Debt (LFQ): 321,704,000
High Arctic Energy Services Inc. (TSE:HWO) – $4.05
Oil Related Services and Equipment
High Arctic Energy Services Inc. is a Canada-based company, which focuses on providing contract drilling, completion services, equipment rental and other oilfield services to the oil and gas industry. The Company operates through providing oilfield services to customers in Canada and Papua New Guinea (PNG) segment.
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Market Cap: $213.2 Million
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Total Revenue (LTM): 219,900,000
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Operating Income (LTM): 53,800,000
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Total Debt (LFQ): 2,200,000
Orca Exploration Group Inc. (CVE:ORC.B) – $3.23
Oil & Gas Exploration and Production
Orca Exploration Group Inc. is a Canada-based company that is engaged in the hydrocarbon exploration, development and supply of gas in Tanzania, and oil appraisal and gas exploration in Italy. The Company operates through international exploration, development and production of petroleum and natural gas segment. The Company has producing and exploration assets in Tanzania. The Company has interests in a Production Sharing Agreement (PSA) with the Tanzania Petroleum Development Corporation (TPDC) and the Government of Tanzania in the United Republic of Tanzania. This PSA covers the production and marketing of a gas from the Songo Block offshore Tanzania. The Company has an agreement to farm in on Central Adriatic B.R268.RG Permit offshore Italy. Its subsidiaries include Orca Exploration Italy Inc., Orca Exploration Italy Onshore Inc., PAE PanAfrican Energy Corporation, PanAfrican Energy Tanzania Limited and Orca Exploration UK Services Limited.
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Market Cap: $107.1 Million
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Total Revenue (LTM): 79,427,858.7
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Operating Income (LTM): 39,827,422.9
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Total Debt (LFQ): 75,878,340
Birchcliff Energy Ltd. (TSE:BIR) – $5.66
Oil & Gas Exploration and Production
Birchcliff Energy Ltd. is an intermediate oil and natural gas company that is engaged in the exploration for and the development, production and acquisition of petroleum and natural gas reserves in Western Canada. Its operations are concentrated within core area, the Peace River Arch, which is centered over 90 kilometers northwest of Grande Prairie, Alberta, adjacent to the Alberta/British Columbia border. It is focused on over two established resource plays within the Peace River Arch: the Montney/Doig Natural Gas Resource Play and the Charlie Lake Light Oil Resource Play.
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Market Cap: $862.1 Million
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Total Revenue (LTM): 286,568,000
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Operating Income (LTM): 23,659,000
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Total Debt (LFQ): 647,359,000
