Mid-tier, on-shore oil and gas producer Senex Energy is another company I see with huge growth opportunities ahead.
Although production has waned over the last 3 years following the down-turn in oil prices, that is set to reverse rapidly upwards.
Senex is preparing to develop resources in the Surat Basin and Cooper Basin through two key projects: the Western Surat Gas Project and Project Atlas. There are a number of tailwinds which will support the projects:
Expected gas supply shortages for east coast states bringing strong demand and pricing
Strengthened oil pricing
Strengthening global LNG demand
Significant 2P energy reserves (83.9 million barrels of oil equivalent as of 2017)
The Western Surat Gas Project includes a 20-year gas sales agreement with the GLNG project operated by Santos Ltd(ASX: STO). However this growth comes at a cost and Senex is expecting to spend up to $100 million on capital expenditure in the 2018 financial year.
SXY Price at posting:
42.0¢ Sentiment: Buy Disclosure: Held