Who remembers this article from last year? A year on, and with...

Who remembers this article from last year? A year on, and with only one out of 8 in profit, Molopo was the worst performer in the Oil and Gas section ~ down 41%. Probably gives a good indication of how tough-a-year it was for investors in the oil and gas sector.
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Form guide to the race for riches: January 17th 2011.

GET with the trend is usually wise advice for an investor, even if that trend is hard to spot, as it was this past year.

But do not despair, as there are rising voices that suggest 2011 will be better.

Our skies are becoming warmer, our mining companies are digging furiously to support the enormous economies of China and India and baby-boomers are moving to retirement villages and aged-care centres.
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(Dates are from 17th Jan 2011 to 20th Jan 2012)
OIL AND GAS

Bow Energy (BOW)
2011 – $1.175
2012 – $1.515 ~ (+29%)
A coal-seam gas explorer in central Queensland, trading around $1.16. Wilson HTM has a 12-month target price of $1.80. There is upside potential in discovering new assets, rather than an earnings play. Could be attractive to a bigger player, and so has the potential to double in price in two to three years.

Molopo Energy (MPO)
2011 – $1.02
2012 – 60c ~ (-41%)
This petroleum producer explores for and develops coal-bed methane and other land-based petroleum products. It has an interest in several Queensland sites, a shale gas project in Quebec, oil projects in Canada, two South African projects and a US gas project. It is trading at $1.06, with a Wilson HTM 12-month target price of $2. It has applied new drilling techniques to improve shale oil flow rates in Canada and is on track to meet production targets. Close to the North American market.

Horizon Oil (HZN)
2011 – 31.5c
2012 – 21.5c ~ (-32%)
Growth in China and PNG, plus exploration appeal in Taranaki. Will shortly start up a PNG drilling campaign. Volatile but value below 40c, says StockAnalysis. Debt-free and self-funding.

Oil Search (OSH)
2011 – $6.91
2012 – $6.64 ~ (-4%)
As a junior partner with ExxonMobils $6 billion LNG project in PNG, Oil Search could benefit handsomely, provided sales contracts are nailed down ahead of rival projects. The first phase - up to 6.6 million tonnes a year from two production units - is on track for completion in the first quarter of 2014.

AWE (AWE)
2011 – $1.66
2012 – $1.38 ~ (-17%)
Disappointing exploration lately but still has potential, according to Fat Prophets and StockAnalysis. An active explorer in Taranaki, Bass and Perth basins, with a healthy balance sheet and cashflow from producing assets. StockAnalysis values AWE at more than $3 a share.

Tap Oil (TAP)
2011 – 79c
2012 – 73c ~ (-8%)
Tap is a buy in the books of StockAnalysis. It has an underlying value for its net cash and hydrocarbon assets of 69c per share, plus risked exploration upside, taking target value to over $2 a share. Speculative interest during the drilling of Zola and Craigow is likely to lift the stock towards 95c.

Cue Energy Resources (CUE)
2011 – 32c
2012 – 23.5c ~ (-27%)
Has fallen to value territory about 30c, says StockAnalysis. Cashflow from Maari oilfield plus development of Wortel gasfield adjacent to Oyong in Indonesia adds revenue with exploration upside in Taranaki and Carnarvon basins, where Woodside is farming in.

ADX Energy (ADX).
2011 – 10c
2012 – 7c ~ (-30%)
A pure speculative play for oil and gas in Tunisia and Romania. Absolute punt, but well managed and funded by farm-in partners for drilling in February with substantial upside on success, says StockAnalysis. Long-term potential for recent gas and condensate discoveries in Mediterranean.