Small cap stocks split into three camps, he says, the ones producing good-quality oil, the more exciting UK stocks and high-risk exploration plays.
For those who are producing good quality oil and are onshore, lower oil prices are not going to be too much of an issue. Graham-Wood points to Caza Oil and Gas (CAZA), which still has a good rate of return at $60-$70 a barrel West Texas. Genel (GENL) and Gulf Keystone (GKP) are also ones to watch, as Iraq's central government is now letting Kurdistan export crude oil, so it looks like they will be paid. Oil and gas company Sound Oil's (SOU) onshore production is paying all its costs and it has an exciting exploration project which could come in at the end of 2015.
I am guessing that James is just going to sit back and watch the Antrim share price continue to fall. Oil should continue to fall meaning that the wildcat drill they have will get pushed back further and further.... IMO there is no compelling reason for shareholders to invest in them, other than wait and hope for a takeover. When these get below 1.5p I might even have a small punt.
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