The All Ordinaries Index (ASX: XAO) is extremely unlikely to more than double in 2026, but rising ASX energy stock Omega Oil & Gas Ltd (ASX: OMA) is forecast to do just that.
That's according to the team at Canaccord Genuity.
Omega shares closed on Friday trading for 41.5 cents apiece.
This sees the Omega share price up 9% over 12 months.
The small-cap ASX energy stock struggled in the first months of 2025, before hitting one-year lows of 20 cents a share on 19 May. As of Friday's close, the Omega share price had surged 108% from those lows.
And looking to the year ahead, the analysts at Canaccord believe Omega shares can more than double investors' money again.
Here's why.
ASX energy stock in the sweet spot
Omega Oil & Gas released its December quarterly results on 29 January.
The ASX energy stock closed up 2.2% on the day after reporting the completion of its $14.6 million investment to acquire a 19.4% interest in Elixir Energy Ltd (ASX: EXR).
Looking to the year ahead, Omega noted that it will undertake "substantial 2026 drilling campaigns" across the Taroom Trough in Queensland, noting Taroom is "highly prospective for both gas and liquids".
Commenting on the company's plans in the Taroom Trough, Omega CEO Trevor Brown said:
The completion of our investment in Elixir Energy represents a strategically compelling step for Omega.
It strengthens our position across the Taroom Trough, enhances our influence in a basin which we believe is on the cusp of significant value creation, and supports Omega becoming the industry partner of choice in the region.
The team at Canaccord agree this is a positive development for the ASX energy stock.
The broker noted that the government's 2025 Gas Market Review highlighted that the East Coast gas market could potentially face shortfalls by 2029.
"Longstanding gas fields are rapidly depleting, and new supply projects are not coming online quickly enough to offset the decline," Canaccord said.
As for the growing importance of the Taroom Trough, Canaccord noted, "The Taroom Trough will see elevated activity levels in 2026 as Elixir, Shell PLC (NYSE: SHEL) and Omega all conduct material drill programs."
The broker added:
With the Federal government set to develop an East Coast domestic gas reservation scheme (in consultation with industry and trade partners) LNG exporters should be seeking to shore up their domestic gas credentials, a clear positive for the Taroom Trough in our view.
With a material footprint on both the Eastern and Western flanks of the Trough, we believe OMA is set to be a dominant proponent in this play.
Connecting the dots, Canaccord retained its speculative buy rating on the ASX energy stock with an 85-cent per share price target.
That's more than 104% above Omega's closing price on Friday.
