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3 small energy companies profting from overseas oil and gas

Some of the greatest companies in Australia are in the resources industry, thanks to all the natural resources that this country has to offer. These companies also operate overseas in places like Papua New Guinea, Africa and the US.

Smaller companies with overseas operations also are supplying the energy needs of a world hungry for more power, electricity and fuel. Investors can happen upon unique opportunities by following small and micro-cap stocks that are building their futures today internationally.

Sundance Energy (ASX: SEA) operates in US oil and gas regions located in such states as Oklahoma, Kansas and Texas, three states with long histories of oil and gas, but recently have been in the news about shale oil development that may make the US a net exporter in several years.

Its other drilling operations are in the Niobrara and Bakken regions, resource formations that many big US oil and gas companies have major developments in also.

In its latest September quarterly report, it produced an average daily 3,607 barrels of oil equivalent (BOE) net of royalties, up 132% over the previous corresponding period in 2012. Revenue increased to $28.7 million in the quarter, with oil sales averaging $103.97 per barrel, net of transportation and marketing fees.

Oil and gas developer and producer Neon Energy (ASX: NEN) has its operations outside of Australia in Vietnam, Indonesia and California. Just this month it announced a new resource discovery in Vietnam, sending its share price up about 19% on the December 6 announcement day. It currently is at $0.33 a share. It has a joint venture with the Italian multinational Eni for this exploration, and will further test the well together.

In its September quarter production report, it achieved a total average daily production of 271 BOE, up 22% from the 222 BOE in the June quarter. Quarterly revenue was up 25% to US$2.5 million.

Liquified Natural Gas (ASX: LNG) processes LNG for exportation, and is currently developing a processing plant in Gladstone, Queensland, expected to have a lifespan of 25 years.

It plans to develop a processing plant in Louisiana, USA, to take advantage of the bonanza of shale oil and other unconventional gas developments that could make the US not only energy independent, but also create enough oil and gas to become a major exporter again.

Phase 1 of the development is to create two LNG trains, or processing plants, which will use the company’s proprietary OSMR process technology. Once complete, it could generate EBITDA of US$380 million yearly for 20 years.

Foolish takeaway

Small and micro-cap resources companies can use a lot of funds at the beginning to develop their resources without too much earnings to show for it, but the investment may pay off later on down the line.

You don’t have to rush into the stocks, but when their developments begin to approach their first production, you may have a better idea of what they could potentially earn. Read the reports, follow the stories, and make an informed decision. If you miss out on the first rise, then that is the price of investing safely.

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Motley Fool contributor Darryl Daté-Shappard does not own shares in any company mentioned. 

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