Canadian energy stocks experienced a challenging period as the oil price sagged
It has been a challenging period for the Ubika Energy 20 (UE20) Index, as it declined 17.6% since February 13th, with 18/20 constituents trending downwards. The UE20 underperformed both the price of WTI oil and its benchmark TSX Capped Energy Index, which shed 7.9% and 3.5%, respectively. Nonetheless, there was a flurry of activity in the Montney region of British Columbia as numerous UE20 constituents made strategic acquisitions in the area. Painted Pony Petroleum announced the acquisition of UBR Blair Creek Ltd, which is expected to double the Company’s natural gas production within two years. Blackbird Energy, on the other hand, is looking to boost its reserves with the acquisition of the Elmworth and Pipestone lands from Paramount Resources (TSX: POU), increasing its Montney land holdings to 116 gross sections.
Disclosure: Neither the author nor any of the principals at Small Cap Power, or their family members, own shares in any of the companies mentioned above.
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It has been a challenging period for the Ubika Energy 20 (UE20) Index, as it declined 17.6% since February 13th, with 18/20 constituents trending downwards. The UE20 underperformed both the price of WTI oil and its benchmark TSX Capped Energy Index, which shed 7.9% and 3.5%, respectively. Nonetheless, there was a flurry of activity in the Montney region of British Columbia as numerous UE20 constituents made strategic acquisitions in the area. Painted Pony Petroleum announced the acquisition of UBR Blair Creek Ltd, which is expected to double the Company’s natural gas production within two years. Blackbird Energy, on the other hand, is looking to boost its reserves with the acquisition of the Elmworth and Pipestone lands from Paramount Resources (TSX: POU), increasing its Montney land holdings to 116 gross sections.
