The energy sector has been performing strongly this year as oil prices surge.
But if you thought it was too late to invest in this side of the market, think again.
That's because Bell Potter believes one ASX energy stock could rise 50%.
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Which ASX energy stock?
The stock that Bell Potter is recommending to clients with a high tolerance for risk is Strike Energy Ltd (ASX: STX).
It is an onshore Perth Basin gas exploration and development company with material discoveries across three advanced projects. These are the 100% owned Walyering and South Erregulla projects and the West Erregulla project, which is co-owned with Hancock Prospecting.
Bell Potter notes that the company has made an increase to its reserves and contingent resources. It said:
STX has announced updated Reserves, Contingent Resources and Prospective Resources across its West Erregulla and Erregulla Deep projects. At West Erregulla, 2P Reserves have increased 20% to 251PJ (net to STX). At Erregulla Deep, an initial 2C Contingent Resource of 38PJ and 2U Prospective Resource of 117PJ has been booked.
The estimates are independently certified by Houston-based Miller & Lents, Global Oil and Gas Consultants. The update incorporates results from the Erregulla Deep-1 well (September 2024) and a Natta 3D seismic survey acquired in May 2025. This announcement was a potential value catalyst; the modest upgrade is a positive.
Big potential returns
According to the note, the broker has retained its speculative buy rating and 15 cents price target on the ASX energy stock.
Based on its current share price of 9.9 cents, this implies potential upside of just over 50% for investors over the next 12 months.
To put that into context, a $2,000 investment would turn into approximately $3,000 by this time next year if Bell Potter is on the money with its recommendation.
Commenting on its positive view of the stock, the broker said:
STX is leveraged to the Western Australia energy market where electricity and gas prices are expected to remain supportive. Walyering provides supplementary cash flow while the South Erregulla Peaking Gas Power Project is being developed (online 4Q 2026). Potential exploration success (Walyering West, Ocean Hill) remains a value catalyst. While the West Erregulla timing and development scenario remain uncertain, this asset will potentially be a large source of energy supply.
