The first is Amity Oil, which is currently drilling the Gocerler-2 well in Turkey. First low level gas shows were noted around the 710-718 metre mark, which was reported as lower intensity than the discovery well, Gocerler-1. "Gas testing, along with long awaited first Turkish gas sales, should support Amity in the market," Carmichael said.
The second stock considered a good speculative buy is PNG-focused Orogen Minerals. The company is a JV partner in each oil and gas project in the country, including the PNG pipeline project. Recent exploration success by Oil Search should boost Orogen Mineral's long-term earnings and valuation.
"Orogen offers huge potential with no debt and approximately $170 million cash, representing half its current market capitalisation. The lifting of Government imposed restrictions on ownership and domicile issues could attract bids of at least $1.80 per share," Carmichael said.
Last but not least is Pancontinental Oil and Gas, which is currently drilling Walyering-4, just north of Perth. Success, which they rate at 70%, will add four cents per share to Pancontinental's NAV.
The company is participating in three additional wells over the next few months. These include Huinga-1, Carlston-1 and Waingaromia-2 in the North Island of New Zealand.
