Please ensure Javascript is enabled for purposes of website accessibility

3 Oil and Gas Shares Rising Fast

By Roland Head – Updated Apr 7, 2017 at 12:35PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

We take a look at big gainers Genel Energy, Afren, and Gulfport Energy Corp.

LONDON -- Oil prices recently retook some of their recent losses, though they're down slightly today. Brent crude is down about 1.5% to $109.74 per barrel. U.S. WTI crude has remained weaker and is currently down just 1.67% to $90.36, having touched a low of $89.89 on Thursday morning.

Natural gas for November delivery has had a strong run recently, having breached $3.40 per MMBtu, though today it's down 3.17% to $3.42/MMBtu.

Many investors prefer to invest in commodity ETFs rather than directly in futures, and the United States Oil Fund (NYSE: USO), having started the week with a spike past $34.50, is now down to $33.46. The United States Natural Gas Fund (NYSE: UNG) is up on last week, though it has started the day down 2.35% at $22.07.

The nature of oil and gas companies' businesses means that they may succeed or fail regardless of oil prices. This week's risers have all made gains well in excess of the oil price over the last few months.

Genel Energy (LSE: GENL.L)
Genel Energy has gained 25% to 778 pence over the last three months, as political and operational progress in Kurdistan has brought the prospects of large-scale oil production and export closer to a reality for the company, whose CEO is ex-BP boss Tony Hayward. Kurdistan's status as a semi-autonomous region of northern Iraq means that political problems are the main stumbling block to successful development.

Afren (LSE: AFR.L)
Afren shares have risen by 59% to 137 pence so far this year, and like Genel, it looks likely to benefit from Kurdistan's massive oil reserves. Afren is currently carrying out exploration drilling in the Ain Sifni PSC in Kurdistan. The company's previous well in this area encountered 460 meters of net pay and delivered more than 13,000 barrels per day under initial testing. Afren is also developing previous discoveries in Nigeria.

Gulfport Energy (Nasdaq: GPOR)
Gulfport Energy
has gained 69% to $31.16 over the last three months, outperforming the United States Oil Fund ETF by 56%. The company is gaining confidence in its Utica Shale drilling program and has recently been upgraded by brokers Global Hunter Securities from "accumulate" to "buy," with a target price of $43.

Small oil and gas shares are always volatile, and this week's winners could be next week's losers. To learn more about how to select oil and gas shares with the potential to deliver outstanding multibagging profits, I strongly recommend you download the latest special free report from the Motley Fool, "How To Unearth Great Oil & Gas Shares." It's completely free and includes details on how to select shares and structure your portfolio to maximize your potential profits and minimize your risks. Hurry, though -- this new report will only be available for a limited time, so download it today.

Are you looking to profit as a long-term investor? "10 Steps To Making A Million In The Market" is the latest Motley Fool guide to help Britain invest. Better. We urge you to read the report today -- while it's still free and available.

Further investment opportunities:

Roland owns shares in Genel Energy but does not own any of the other shares mentioned in this article. The Motley Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.