The Buru Energy share price is up 5.8% to 18 cents per share at the time of writing.

Buru Energy is engaged in oil and gas exploration and production in the Canning Basin in the northwest of Western Australia.

The group is divided into 3 reportable segments:

• Oil, which includes the development and production of the Ungani conventional oilfield;
• Gas; which includes exploration of gas in Valhalla/Asgard and Yulleroo areas;
• And exploration, which focuses on prospects along with the Ungani oil trend and evaluation of the other areas.

The company generates the majority of revenue through the sale of crude oil. It's partnered with blue-chip energy retailer Origin Energy Ltd (ASX: ORG) in its Canning Basin drilling sites. 

Buru Energy's Canning Basin project

The company has confirmed the drilling rig for the three-well 2021 Canning Basin program as Ensign Rig 963. It's a sister rig to Ensign 970 currently operating at West Erregulla in the Perth Basin. Ensign is the drilling rig manufacturer. 

The Ensign 963 rig most recently drilled in the Beetaloo Basin for Origin Energy, Buru's Joint Venture partner for the Canning Basin exploration program.

Buru has agreed on a letter of intent with Ensign, including a deposit for initial rig mobilisation, and the formal rig contract is being finalised. The bidding process for well services contracts has been completed, and awards are in progress.

Buru Energy investors have been closely monitoring recent news, with the company setting relatively high drilling targets and the Buru Energy share price rising accordingly.

The spud date of the first well, Kurrajong 1, is on track for early to mid-June, with site construction underway. Spud or spudding is the process of first beginning to drill a well in the oil industry.

The Buru operated Canning Basin field program is kicking off with the northern wet season drawing to a close. The program includes a three-well drilling program and an extensive 2D seismic program of some 1,100 kilometres of data acquisition.

The two-well exploration drilling program is on conventional oil prospects, which Buru Energy hopes will find "very significant prospective resources". The drilling program will also include a development well on the Ungani Oilfield. 

What Buru Energy management said

Buru executive chair Eric Streitberg said it was an exciting period for Buru Energy:

We are very pleased with the way the program is coming together in what will be a very big year for Buru in the Canning. We are drilling two of the largest onshore conventional oil prospects in Australia and success will be transformational for Buru, for the Kimberley, and
for Western Australia.

It is a multi faceted process to get ready to spud the first well, and we are on track and looking forward to starting work in the field and drilling some world class oil prospects.

Buru Energy share price snapshot

The Buru Energy share price has risen 95% over the past 12 months, from a low of 8 cents on 21 April. It's down slightly this week, but it's up 38% this month and 50% in 2021 to date.

The post Buru Energy (ASX:BRU) share price jumps 6% on Canning Basin project appeared first on The Motley Fool Australia.

Let's take a look at the ASX energy company's latest exploration announcement.

What did the company announce?

The Buru Energy share price is gaining today after the company reported it's ready to start a major drilling and seismic exploration program at its Canning Basin project in Western Australia.

The drilling program, set to commence in June, is the largest to take place at Canning Basin for many years. It will include exploration wells on two large conventional oil prospects as well as the development of a new well on the Ungani Oilfield. Buru interprets this to be "an undrained part of the field".

Buru expects to award the seismic contract within the next few weeks. Terrex Pty Ltd has been selected as the preferred contractor. The seismic exploration will cover roughly 1,200 kilometres of surveys, which Buru expects will take around 50 days to acquire.

Commenting on the exploration program, Buru's executive chair Eric Streitberg said:

Our exploration program is on track, with a lot of hard work and attention to detail paying off. We are planning to use a large rig run by an experienced contractor and have put in place a very experienced drilling team to run the program. We are drilling two of the largest onshore oil exploration targets in the country at a time of rising oil prices and critical domestic oil production declines.

In parallel with the drilling program we will be acquiring a major seismic program that will help us fill our prospect inventory and set us up for a continued drilling program next year.

The program is targeting a total of 97 million barrels of conventional oil, and Buru reports it has received environmental approvals for the drilling of the wells.

Buru Energy share price snapshot

Buru Energy shares have handily outpaced the All Ordinaries Index (ASX: XAO) over the past 12 months, gaining 136% compared to a 53% gain on the All Ords.

Year to date, the Buru Energy share price has continued to perform well, up 27% so far in 2021.

The post Here's why the Buru Energy (ASX:BRU) share price is flying 6% today appeared first on The Motley Fool Australia.

Oil and gas (LNG) prices both fell off a cliff in 2020. That came as domestic and international travel ground to a halt amid global lockdowns aimed at stemming the spread of COVID-19.

On 3 January last year, Brent crude oil was trading for US$68.60 per barrel. By 21 April the price had cratered to US$19.33. Though the price falls were not quite as dramatic, LNG prices sank as well.

By the end of April energy prices began to battle back. Slowly. As recently as 30 October, Brent was still selling for US$37.36 per barrel.

Then came the announcements of multiple effective coronavirus vaccines. While these are still in the early stages of rollout – Australia won't begin mass vaccinations until March – energy demand is picking up as the world emerges from its self-imposed cocoon.

Together with lower supplies, thanks in large part to unilateral cuts from OPEC powerhouse Saudi Arabia, Brent crude is trading at US$55.63 (AU$72.25) today. That's up 49% just since the end of October.

And spot prices for LNG in Asia are at record highs, currently over US$20 per million British thermal units (MBTU).

Leading ASX energy shares rocketing higher

With the price of the commodities they pump from the earth soaring, leading ASX energy companies have seen their share prices rocketing higher. Not that they've recovered their pre-pandemic levels yet, mind you.

But since 1 November the Oil Search Ltd (ASX: OSH) share price is up 65%.

The Beach Energy Ltd (ASX: BPT) share price is also up 65%.

As for the Santos Ltd (ASX: STO) share price? It's up 54% since the first trading day of November.

Woodside Petroleum Limited (ASX: WPL) trails this pack with a share price gain since 1 November of 'only' 45%.

What's next for global energy markets?

That's a peek in the rearview mirror. The pressing question for investors now is what to expect from energy prices, and ASX energy shares, in 2021.

As reported by the Australian Financial Review, Wall Street research firm Bernstein "expects a significant recovery in oil demand in the second half this year".

That forecast is based on the virus being reined in and unleashing pent-up demand for travel. And Bernstein doesn't believe the push towards green energy negates this bullish view.

According to Bernstein's chief oil and gas analyst in Asia, Neil Beveridge:

We still expect another cycle in oil given the under-investment in the industry and demand recovery. You can believe in net zero and still be bullish on oil stocks and oil price in our view.

Eric Streitberg, executive chairman of Buru Energy Limited (ASX: BRU), agrees that the shift to renewable energy sources won't negate the strong demand for oil and gas anytime soon:

Although there is an inexorable and necessary shift to renewables, the world still needs oil and gas in large quantities and will do so for decades to come. On the supply side, investment in the industry has collapsed and this can only mean production is unlikely to keep up with demand, which will inevitably lead to higher prices.

Buru's share price, by the way, has also rocketed alongside the soaring energy prices, with Buru shares up 45% since 1 November.

Then there's Carlos Slim, the world's 21st-richest person.

According to Bloomberg, Slim and his family business own shares worth US$230 million in oil refiner PBF Energy Inc (NYSE: PBF) and pipeline operator PBF Logistics LP (NYSE: PBFX). And they've kept adding to their holdings when share prices were tumbling.

Arturo Elias, Slim's spokesman, said:

The world still needs refining for planes, ships, cars and these companies were punished because consumption fell due to the pandemic.

ASX oil and gas company CEOs cautiously optimistic

Making hay while the sun shines is good policy if, well, you're making hay. But the CEOs of some of Australia's top energy shares prefer to err on the conservative side (quoted by the AFR).

Oil Search CEO Keiran Wulff says:

LNG and oil prices have had a strong start to the year and there is cautious optimism pricing will continue to be supported through the year… Regardless of the improved pricing outlook, Oil Search will continue to run the business conservatively as we focus on costs, production and break-even to enhance resilience and position the company for greater upside in the event of longer-term stronger pricing than our current planning forecast.

Beach Energy's CEO Matt Kay acknowledges the difficulty in making forecasts in the current environment. He says, "All of us are hopeful that 2021 will be a year of greater stability, but if we learnt anything in the last 12 months, it's to expect the unexpected."

And Santos' CEO Kevin Gallagher points out that energy companies, and investors, should expect some volatility in energy prices and act accordingly.

No-one should be surprised when gas prices go up or down – that's the nature of our business. Certainly, we have seen a significant recovery in prices over the past months but energy companies get into trouble when they run their business based on prices at the top of the cycle.

The post With energy prices roaring back will these ASX energy shares keep booming? appeared first on The Motley Fool Australia.

Buru Energy is an oil and gas exploration and production company. It is focused on exploring and developing the petroleum resources of the Canning Basin in the Kimberley region of Western Australia. With this, the company holds interests in a portfolio of exploration permits covering around 5.5 million gross acres in the Canning Basin. It also has a 50% operating interest in the currently producing Ungani Oilfield.

What did Buru Energy announce?

This morning, Buru provided an operations update regarding Ungani oil sales and production. Notably, the company revealed it has been buoyed by the improving crude market, with increases in the Brent oil price during May resulting in additional revenue from the May lifting of around US$200,000.

The company also announced that the next lifting of Ungani crude from Wyndham Port, which is expected to be in mid-July, has been sold on a spot basis.

The Ungani joint venture plans to continue to sell crude on a spot basis while it reviews the potential for entering into another longer-term offtake agreement.

The received price of the July lifting will be based on the average dated Brent oil price for the month of July, less an agreed discount to reflect an increase in marine transport charges to a refinery in Asia.

Meanwhile, Ungani field production is currently 1,250 barrels of oil per day and a series of well optimisation activities have been planned.

Buru also noted that its current farm-out process is progressing well. Various parties have accessed the virtual data room and with COVID-19 restrictions easing, locally-based interested parties are now able to physically attend Buru's office to access the geophysical database.

Commenting on today's update, executive chair Eric Streitberg said:

"We are very pleased and relieved to see the firming oil price that gives us a healthier return from our oil sales. Although we are facing higher shipping charges and tightening refinery terms, there is still a good market for our particular high quality crude from Ungani.

Our strong cash position and our high quality exploration portfolio puts us in a good position to weather the current storms and it has also been very pleasing to see the share price improving. Although like many other companies our share price is still near historic lows, it is at least now reflecting a value greater than our cash position."

The post Buru Energy share price jumps 15% as the ASX small-cap benefits from firming oil prices appeared first on The Motley Fool Australia.

We don't yet know what the cause of the outages were, but it seems to have driven investors to do something else. A flat market and hardly any strong share price gains or losses was the result.

But these 4 companies saw their share prices sink…

S2 Resources Ltd (ASX: S2R) saw its share price sink 30.8% to $0.45, after the miner released some disappointing news about follow-up drilling at its Monsoon prospect in Western Australia. S2 Resources was a demerger from Sirius Resources taking with it the Polar Bear project (which includes Monsoon). Highly-regarded prospector Mark Creasy owns 30% of the shares too, but he'll be feeling the pain of the disappointing test results released today.

Buru Energy Limited (ASX: BRU) fell 7.3% to 19 cents, despite no news from the oil and gas producer and explorer. The only problem is the oil price. Ungani Oilfield production was suspended earlier this year and has yet to restart, and Buru says it will take several months from go decision to start. That's probably why the share price is down more than 20% year-to-date.

WPP Aunz Ltd (ASX: WPP) saw its share price sink 6.4% to $1.08, despite no news from the company. Formerly STW Communications, WPP provides a diverse range of advertising, marketing content and communications services through 80+ companies, and recently said it expected to deliver single-digit earnings growth in the 2016 financial year. The share price can be volatile given the low liquidity with WPP owning 61.5% of the shares outstanding.

Blackmores Limited (ASX: BKL) shares fell 3.7% to $124.16, but the vitamins and supplements producer has still its share price recover from falling as low as $113.53 set earlier this month. The company's share price plunged from a high of $166.26 in late August after reporting that the first quarter results would be lower than the previous year. Investors are still trying to work out what that really means and where to value the shares, which means the share price can move around a bit. However, at the current price, Blackmores sports a P/E ratio of around 21.4x.

The post 4 stocks sinking on the ASX today appeared first on The Motley Fool Australia.

It is understandable. All our lives we were raised to believe that having a lot of money makes us rich. But a recent article by Motley Fool writer Morgan Housel reminded me how as investors we should be sassy enough to know the difference between 'rich' and 'wealthy'.

And let me tell you now – being wealthy is our end-game goal.

I'm talkin' bout wealth

To put it plain and simple; rich is working for a lot of money, while being wealthy is having money working for you to produce income so you can enjoy life.

A lot of people are rich. They have jobs that pay them a lot of money, or receive a windfall of some kind. But stop them from working and you'll quickly see the money pool starts to run dry. The bills keep coming, but spending stays high as people try to maintain the lifestyle they are used to.

Wealth is created by investing to grow your money and earn passive income. As Chris Rock hilariously puts it in his (R-rated) comedy piece; "I'm not talkin' bout rich, I'm talkin' bout wealth. Wealth will set us free."

Robert Kiyosaki, author of the Rich Dad series of books, calls this being 'financially free', putting money to work and having cash flowing into your pocket without the worry of day-to-day work.

Why 'wealth' is the way

Being wealthy involves more than just money. It also means having the time and peace of mind to enjoy life. You can also be wealthy without being rich. Good health and a strong network of family and friends are what many people think of as wealth.

But in the financial sense, wealth is having your money do the heavy lifting, so you can focus on the things you love to do, the things that get you out of bed each morning. This wealth, notes Chris Rock, is empowering.

Why 'rich' is a risk

Investing with the aim to 'get rich' often leads to accepting higher than average investing risk and poor decision making. When the focus is solely on making money the fear of missing out and emotions of greed make it easy to get caught out chasing investing hype and fads.

Remember Maverick Drilling and Exploration Ltd (ASX: MAD)? Or perhaps Buru Energy Limited (ASX: BRU)? Both companies were hyped as being the next big thing in oil and gas, but shares soon plummeted, dragging shareholders' wealth with them.

This is an easy mistake to make as new investors. I fell into the same trap when I started investing, but it ultimately destroys wealth.

How to invest for wealth

Unfortunately, there are no short-cuts to 'wealthy'. It takes time, hard work and persistence to build. To keep you on the right path here are five important tips to help you invest for wealth:

1. Avoid fads, hot-stocks and hyped up IPOs. Two of the biggest recent IPOs; Orion Health Group Ltd (ASX: OHE) and Medibank Private Ltd (ASX: MPL) turned out to be relative flops.
2. Focus on the performance of the business not the share price. A company that grows earnings will automatically see its share price rise.
3. Start by invest in boring companies with existing earnings supported by long-term trends, for example ResMed Inc. (CHESS) (ASX: RMD) or Fisher & Paykel Healthcare Corp Ltd (ASX: FPH).
4. Remember that not all wealth comes from money.

The post The simple way to gain investing wealth appeared first on The Motley Fool Australia.

Gold miner St Barbara Ltd (ASX: SBM) has rocketed up 107% in the past month alone, and more than 300% since the start of the year. Named one of Australia's lowest cost producers by colleague Regan Pearson today, with huge operating margins of 89% in the last quarter, St Barbara has 2 mining operations, Leonora in Western Australia and Simberi in Papua New Guinea. The company sold its Solomon Islands mine last week for a 'nominal amount'.

Buru Energy Limited (ASX: BRU) has seen its shares soar 55% in the past month, and now trades at around 52 cents per share. That is partly on the back of the oil price, which has recovered substantially from lows not seen since the GFC. Brent oil is now around US$66 per barrel. Buru is moving its Ungani oil field into operational mode, and the company is targeting 3,000 barrels of oil per day (bopd), from an initial 1,250 bopd.

Liquefied Natural Gas Ltd (ASX: LNG) ('LNGL') has rocketed up 40% in the past month, on some positive news flow. LNGL is developing a liquefied natural gas export facility in the US using its patented OSMR technology that cuts the cost of developing LNG processing plants by around half. The company has 3 facilities under development, Magnolia LNG Project in the US, Bear Head in Canada and Fisherman's Landing at Gladstone in Queensland.

Iron ore producer BC Iron Limited's (ASX: BCI) shares have gained 42% since early April after the spot iron ore price staged a 20% plus recovery in the past month. But whether that's a 'dead cat bounce' remains to be seen. The underlying problem of too much supply driving down iron ore prices still remains – despite reports that the majors including Vale and BHP Billiton Limited (ASX: BHP) were looking at slowing their production growth.

Bellamy's Australia Limited (ASX: BAL) has seen its shares jump 32% in the past month, and the share price has doubled since the start of this year. The Tasmanian-based infant formula business has capitalised on strong demand for its products both in Australia and overseas, particularly China. As China's middle-class population grows, so too should demand for Bellamy's products.

The post 5 ASX stocks you should've bought last month appeared first on The Motley Fool Australia.

But as we always say, just because the market rose today, doesn't mean every stock did either. Here are 4 smaller companies that didn't feel the love from shareholders today.

Gold miner Alkane Resources Ltd (ASX: ALK) fell 7.9% to 29 cents. Alkane says its total all-in sustaining costs for the quarter soared to $1,588 an ounce, and it produced 13,947 ounces in the quarter. That was below the average price it received for its gold – at $1,472 an ounce. Investors will be hoping the company can get its production costs back on target.

Hansen Technologies Ltd (ASX: HSN) dropped 6.4% to $2.20, despite no news from the company. Hansen provides customer care and billing systems software into a number of countries including Australia, UK, USA, New Zealand, China and Argentina. In a recent presentation, the company says it is targeting operating revenue in excess of $95 million and an earnings before interest, tax, depreciation and amortisation (EBITDA) margin of 25%-30%. Favourable trading conditions will see the company hit the top of that target range.

Covata Ltd (ASX: CVT) saw its shares sink 4.8% to 59 cents – again with no news from the company. Still, shares are up more than 150% in the past 12 months, as the company has made several positive announcements about new markets and contract wins for its security products, including a ten-year licencing deal with internet giant Cisco in March this year.

Petroleum company Buru Energy Limited (ASX: BRU) continues its selloff, losing another 4.4% today, after falling 5.8% on Friday. As we reported, the resignation of non-executive director Peter Jones on Friday could have contributed to the fall, as oil prices rose on Friday. A falling Australian dollar and recovering oil prices should see Buru track higher over time.

The post 4 small cap stocks out of love on the ASX today appeared first on The Motley Fool Australia.

Energy and resources stocks led the way, after commodities prices rose overnight, with some investors believing we've hit the bottom and are on the way back up. I'm not so sure about that, and certainly wouldn't want to bet the house on mining stocks just now (or at all).

Still, plenty of industrials companies were heavily sold off by investors today. Here's our view on four of them.

Cloud-accounting firm Xero FPO NZ (ASX: XRO) plunged 10.3% to $20.32, after reporting mixed results for the year ending March 2015. Xero reported a net loss after tax of $69.5 million, despite subscription revenues rising 81% over the previous year. Paying customers also climbed, rising 67% to 475,000. Colleague Owen Raskiewicz is bullish on the company – and here's his coverage of the results.

Resmed Inc. (CHESS) (ASX: RMD) saw its shares sink 9.7% to $8.46 after reporting a slight decline in gross profit for the March 2015 quarter. The company which provides products to help sufferers of sleep apnea, saw some margin compression, as revenues rose 6% to US$422.5 million. After rising 51% in the past six months, perhaps some of the frothy 'hope' has been blown out of the share price. As a long-term shareholder of Resmed, it's but a mere blip.

Buru Energy Limited (ASX: BRU) fell 5.8%, but is still up 33% since the start of the year, as oil prices recover. Still, the fall may have something to do with today's announcement of the resignation of non-executive director Peter Jones, who was suffering from ill health. Mr Jones was the founding chairman of ARC Energy – the company from which Buru was born. Buru has petroleum assets in the Canning Basin in Western Australia.

TNG Limited (ASX: TNG) slipped 8.8% to 15.5 cents, after the resources company announced that it had issued 15.7 million shares at an issue price of 13 cents to raise $2 million from a strategic Hong Kong institutional investor. Cleary investors weren't happy that shares had been issued to an external party for a huge discount, further diluting their holdings. TNG is attempting to develop the Mount Peake Vanadium-titanium-iron project in the Northern Territory.

The post 4 stocks pounded by the market today appeared first on The Motley Fool Australia.

Part of the problem is supply and demand, further complicated by the Organisation of Petroleum Exporting Countries (OPEC) which is aiming to recapture lost market share, and the United States, which doesn't want its high-cost domestic oil production to head back offshore.

At least one investment bank thinks that a number of oil stocks look materially undervalued however, with JP Morgan predicting that junior oil stocks like Senex Energy Ltd (ASX: SXY) are set for a massive re-rating this year.

According to their predictions, Senex Energy could rise up to 78%, while Buru Energy Limited (ASX: BRU) is tipped to rise a staggering 191%. AWE Limited (ASX: AWE) and Santos Ltd (ASX: STO) are also tipped for hefty increases.

(You can read the full coverage of JP Morgan's forecasts in my earlier article here)

Yesterday's release from Senex announcing the establishment of an unsecured, three-year, $80m multi-currency facility with Westpac Banking Corp (ASX: WBC) has me wondering if this could be the spark for Senex's return to grace.

Management previously announced that Senex would slow its exploration plans, and focus on higher-reward opportunities with a view to prioritising short-term production (focussing on improving cash flow).

With $74 million in cash at the end of December, no debt, and a hedging program, Senex was already in a pretty good financial position.

An additional $80m in debt funding on 'attractive terms' for 'general corporate purposes' seems a curious decision, though management states – and I believe – that Senex has no need to draw on the debt funding.

The funding will allow for additional flexibility over the next few years, providing opportunity for acquisitions or a ramp-up in exploration activity if and when those actions become appealing.

Establishing the facility now also takes advantage of near-bottom interest rates, which may go lower but won't go that much lower.

Senex thus has the flexibility and financing to keep its operations low-key for as long as markets are subdued, or leverage itself to take advantage of opportunities that might present itself.

While an investment in Senex does have an element of risk, the company looks reasonably valued at today's prices, and extremely cheap if – IF – oil prices are going to return to former levels around US$100/barrel.

The post Senex Energy Ltd takes on its first debt: Here's what you need to know appeared first on The Motley Fool Australia.

Recent share price rises have been supported by a gradual firming in the price of West Texas Intermediate (WTI) and Brent crude oil around the US$53 and $58 price range, respectively, over the past few trading days. The price lift has been primarily attributed to rising geopolitical tensions in the Middle East and falling rig counts in North America.

Indeed, some investors may have concluded they don't want to be that guy who did nothing while watching the price of the Black Gold fall to jaw-droppingly low levels, before rebounding higher on tapered supply and solid demand

Well, today's buyers have lifted the likes of Senex Energy Ltd (ASX: SXY) 10.9%, Woodside Petroleum Limited (ASX: WPL) 0.5%, Santos Ltd (ASX: STO) 0.4%, Drillsearch Energy Limited (ASX: DLS) 3.18% and Buru Energy Limited (ASX: BRU) 10.45%.

But would that guy have been correct to do nothing, or is it time to act?

It's no secret the political right in the United States would love little more than to see the OPEC group of oil-producing nations fracked by its technologically-advanced shale exploration industry, with low prices an acceptable consequence. Whether this outcome materialises, or OPEC acts to support prices itself is unknown, and oil stocks remain a high risk / high reward play given the uncertain future.

It's also quite possible that oil may indeed be in a long-term bear market, which means the sector's one to avoid, but only time will tell.

Personally, I think a little exposure to the energy sector at knock-down prices is prudent as part of a balanced portfolio, although there are other businesses likely to produce far more reliable returns for smart investors…

The post Should you buy energy stocks to outperform in the year ahead? appeared first on The Motley Fool Australia.

Senex Energy Ltd (ASX: SXY) is tipped to lift 78%, while Santos Ltd (ASX: STO) and AWE Limited (ASX: AWE) are expected to rise 55% and 48%, respectively.

According to the forecasts, published this morning, JP Morgan expects that falling oil prices are a temporary phenomenon, and that a weaker Australian dollar will see the value of domestic oil producers soaring.

Drillsearch Energy Limited (ASX: DLS) and Oil Search Limited (ASX: OSH) are also expected to experience minor price rises over the year, while Woodside Petroleum Limited (ASX: WPL) and Beach Energy Ltd (ASX: BPT) are tipped to fall 2% and 26% respectively.

So, should you rush out and buy oil stocks?

It's hard to say.

JP Morgan forecast previously that Brent crude oil would be trading at $42 by the end of March – but prices stayed above $50.

Motley Fool analyst Mike King outlined the problems with relying on investment bank price forecasts in his excellent article here, while I myself had took a stab at the pitfalls of commodity price forecasts back in January.

Rather than play into the short term-ism of market forecasts, investors who want to get into oil stocks should think about the following factors:

1. Australian oil producers are changing hands pretty cheaply

Not counting Woodside and Oil Search shares, other companies like Beach, Senex, Buru and Santos look to be reasonably cheap – I'm definitely considering picking up more Senex shares at today's prices.

2. It's likely the price of oil will go higher in the medium term

Mainly because lower prices are costing the big producers like Saudi Arabia billions in lost profits.

However, investors also need to be aware that the price of oil is still above its long-term average, and should high cost producers remain in the market or OPEC nations not succeed in increasing their market share, prices could well go lower for longer.

It's also worth pointing out that the oil market is hugely complex, with many moving parts; it is impossible to pick when it might bottom out. Be wary of false rebounds too, like when energy stocks pick back up despite little change in supply and demand.

3. A low Australian dollar is a boon to production

Most if not all Australian producers are still profitable at today's oil prices, and if/when oil prices recover, they could be set for a massive upwards re-rating.

However due to all the uncertainties in the market, particularly around where the bottom might lie, I can't encourage readers to go and bet the ranch on JP Morgan's price forecasts.

There are oil companies out there that look like a good buy right now, but be aware of the risks and buy cautiously.

The post Find out why these 4 oil stocks could jump over 50% in 2015 appeared first on The Motley Fool Australia.

But that's no consolation for shareholders in these four companies, who saw their stocks heavily sold off.

Buru Energy Limited (ASX: BRU) fell 10% to 36 cents and Senex Energy Limited (ASX: SXY) continues to fall, losing 9.1% to 30 cents. Both companies have been hit by falling oil prices, which have halved since June 2014. Oil stocks haven't been helped by broker analysts cutting their forecasts (which were wrong in the first place), and all and sundry expecting oil prices to remain at these low levels of around US$50 per barrel, or continue falling.

I can't say I know where oil prices are headed, but assuming the current state of affairs will continue for many years is dangerous.

APN News and Media Limited (ASX: APN) dropped 6.6% to 77.5 cents but has had a great 12 months rising 70% since January 2014. APN owns a number of media assets including newspapers, magazines and radio stations. Late last year, APN purchased Fairfax Media Limited's (ASX: FXJ) Perth-based radio station 96FM for $78 million, to add to its stable. The media company announced late last year that it was looking to offload or demerge its New Zealand Media business, potentially as a separate listing. APN has been forced to take a NZ$54 million writedown on its New Zealand business in 2014 financial year.

And finally, gold miner, Silver Lake Resources Limited (ASX: SLR) lost 6.1% to close at 23 cents. Shares in the miner have jumped by 50% since Christmas Eve, partly on the back of securing a $10 million debt facility from the Commonwealth Bank of Australia (ASX: CBA), in return for delivering 7,056 ounces of gold to the bank over a period of 18 months. Given the proposed sale of the Lakewood processing Mill, it appears Silver Lake is struggling for cash, and investors may want to steer clear for now.

The post 4 ASX stocks crushed by the market today appeared first on The Motley Fool Australia.

I've had some shockers.

Buru Energy (ASX: BRU) down over 75% in 2014.

My small Canadian-quoted oil producer (which remains nameless given I want the flexibility to add to my position) down over 50% in 2014.

3D Systems (NYSE: DDD), the company formerly known as my "3D printing wonder stock", down 66% in 2014.

During 2014, I sold out of my position in rare earths miner Lynas Corp (ASX: LYC), booking a total loss of 85%.

Ouch.

Yet my portfolio has had a nicely positive year, up around 14%, soundly beating the All Ordinaries (INDEXASX:XAO) Index.

(I'm not talking about my Self Managed Super Fund (SMSF) here — it had a stand-out year, up around 24%. I had to pinch myself. More on it in the new year.)

Seems impossible, huh, especially given the Canadian oil producer and 3D Systems were two of my larger positions at the start of 2014?

Diversification makes up for many sins.

As does a plunging Aussie dollar and a portfolio chock full of high quality US stocks.

My Facebook shares continue to make every post a winner. Warren Buffett's Berkshire Hathaway, already my largest position, is up close to 30% in 2014.

Investing overseas is suddenly in vogue.

Never under-estimate an investor's ability to jump on a bandwagon. But on this occasion, they may be jumping on while the wagon still has room to run.

Let me see…

— Economists are falling over themselves to predict an even lower Aussie dollar in the year ahead, with even Glenn Stevens saying he'd like to see it at US75 cents.

— The ASX has had a flat year. By comparison, the Dow has just jumped through 18,000 and is up 9% in 2014.

— The US economy is on fire — growing at 5%, while unemployment is falling and interest rates are still at zero per cent. By comparison, the Aussie economy is heading in almost the opposite direction.

Roll on the bandwagon, my portfolio, and yours too.

Speaking of you, a little known fact about Motley Fool Share Advisor, our flagship membership-only stock picking service, is that each month, as a bonus, as well as an ASX stock pick, we recommend one US-quoted stock to our thousands of members.

How we doing? The average return for all our US-quoted share recommendations is a gain of 36%, double the return of the market. Yankee doodle dandy.

Regular readers of this Motley Fool Take Stock email will know I've long been bearish on the Aussie dollar, and long been bullish on quality US-quoted stocks.

The stance has more than saved my portfolio's bacon in 2014.

Much more. So much more that "FX translation" — the currency gain made when converting my US shares back into Aussie dollars — has been one of my biggest winners in 2014.

Luck, or good management?

Luck on the timing.

Good management on stock selection, although I'm not so arrogant to admit some luck was involved too.

Berkshire Hathaway, a $US360 billion monster, gaining 30% in 2014? That's luck, and WON'T be repeated in 2015.

At this point, let me make it abundantly clear this foreign exchange (FX) gain did NOT come about through currency trading. FX trading is a one-way ticket to the poor house.

I'm a long-term equity investor, not some high frequency trader, glued to his three monitors, each one flashing multiple buy and sell signals, simultaneously.

Life is seriously too short… plus, I can make good money just doing nothing but holding shares in great companies. It comes with much less stress, too, as you can imagine.

As I look forward to 2015, I'm looking more locally.

— I see opportunity in beaten down ASX oil and energy stocks. Not now, but when panic really hits and there's blood on the streets.

— I see opportunity in ASX dividend paying stocks, especially the fully franked variety. With local interest rates almost certain NOT to rise in 2015, by comparison to term deposits, the case for investing in dividend paying stocks is compelling.

I'm busy putting my money where my mouth is… yesterday I bought one stock from the Motley Fool Dividend Investor universe, plus one smaller ASX stock trading on a dividend yield of over 9%, fully franked.

Today, I'm buying another two stocks. No time like the present.

My portfolio, and my SMSF, have soundly out-performed the market in 2014.

I'm not resting on my laurels. I want to keep winning, keep picking winning stocks, keep seeing my portfolio powering higher and higher.

But I am realistic…

— It's unlikely "FX Translation" will provide me with such a tailwind in 2015.

— The ASX can go down as well as up.

— I will make more investing mistakes in 2015. One or more of those mistakes is likely sitting in my portfolio right now, staring me in the face.

— Even though Facebook is still growing quickly, with a market cap of $US227 billion, valuation-wise, there's seemingly not a lot of room for error.

What could possibly go wrong?

As Warren Buffett says…

"Only when the tide goes out do you discover who's been swimming naked."

Time will tell whether I've been swimming naked. Tune back in this time next year.

I'll be using the summer break to review my current holdings. I'll cut some losers, but probably not as many as I should.

Many investors think selling is the hardest thing to do. It's not.

I have four pieces of selling advice. They are pieces of advice I guarantee you'll find liberating.

— Forget what you paid for a stock. It's totally irrelevant to any investing decision.

— Stop waiting for a losing stock to get back to what you paid for it. See point 1) above.

— Cut your losers. Run your winners.

— Be ruthless, don't look back, and move forward decisively, and with confidence.

I'll also be adding new stocks to my portfolio, particularly focusing on companies to add to the growth portion of my portfolio pyramid.

My core comprises big holdings in stocks like Woolworths Limited (ASX: WOW), Telstra Corporation Ltd (ASX: TLS), Berkshire Hathaway and a smattering of big banks thrown in for their fully franked dividends.

But it's growth stocks that can really power your investing portfolio. With the global economy fully into recovery mode, led by America, the stage is set for growth in 2015.

The holy grail of investing is buying growth stocks at value prices. Sometimes you have to pay up for growth, as with my Facebook shares, but other times that growth comes to you at very reasonable prices.

Scott Phillips, our ace stock picker at Motley Fool Share Advisor, has just recommended subscribers to that service buy one such company.

At current prices, this recent IPO trades on a forecast forward P/E of 17, a forecast forward fully franked dividend yield of 3.7%. A growth company at a value price. Nice.

If everything goes as myself and Scott hope and expect, 2015 could be a very good year for my portfolio, and hopefully yours too.

Let me close by wishing all Motley Fool readers a Merry Christmas and Happy New Year.

I hope I've provided you with some investing insights, education and the odd piece of profitable advice, even if that advice has been to avoid some of the dogs that have plagued my portfolio in 2014.

Most investors focus on their losers.

I'm guilty too, although rather than despairing and beating myself up, I do it to help you avoid the mistakes I've made. The column inches I've written here on dogs like Lynas far outweigh what I've written about my big winners of 2014. Such is an investor's life.

Losers are painful, but inevitable. A much more productive use of your time and emotional capital is to concentrate on your winners, including adding to them as their share price rises.

Mentally, it's the hardest thing to do. Financially, it's easily the best thing to do.

Adding to my winners — it's my early new year's investing resolution.

The post My top investing tips for 2015 appeared first on The Motley Fool Australia.

But these five stocks were slammed down by the market today. Here's our view…

Buru Energy Limited (ASX: BRU) dropped 27.3% to close at 46.5 cents. The oil and gas explorer announced today what appear to be disappointing drilling results at its Ungani North 1 well. That's a normal day in the life of a speculative oil and gas company shareholder. A positive result could have seen the shares soar.

Mayne Pharma Group Limited (ASX: MYX) lost 16% to end at 63 cents. At the company's AGM today, CEO Scott Richards reported that the company was being impacted by declining prescription demand for its US Doryx tablets. As a result, revenues in the 2015 financial year so far were down 14% compared to the same period last year. Still, Mr Richards is confident of a stronger second half, but is that hope or a real expectation?

Vocation Limited (ASX: VET) slumped 15.1% to 53.5 cents, after Chairman John Dawkins resigned and the company reported that it had received a claim against it by shareholders alleging misleading conduct and breaching its continuous disclosure obligations. In mid-October, Vocation announced that the Victorian government was withholding $20 million of funding from one of the company's training organisations after a review – despite previous assurances that nothing material would come out of the review. You can find more details here.

The Reject Shop Limited (ASX: TRS) fell 10.8% to $6.35, its lowest price in more than five years. Earlier this week, fund manager BT Investment Management Ltd (ASX: BTT) announced that it had sold around 470,000 shares in the discount retailer, taking its stake to 8.4%, from 10% previously. With no news from the company, it appears that at least some of Reject's shareholders have become disenchanted with the company and are selling out. Which could prove a fabulous opportunity for contrarian investors.

Ainsworth Game Technology Ltd (ASX: AGI) closed down 7.8% to $2.24. Shares have now lost 50% of their value over the past 12 months, driven in large part by the company's recent announcement that it was expecting a weak first half, with domestic revenues down around 30%. But has the market taken a short term view or doesn't believe management? Ainsworth did note that it still expected to report a higher full year report this financial year than in 2014.

The post 5 Stocks slammed on the ASX today appeared first on The Motley Fool Australia.

Today however I'm writing about two junior oil explorers with big potential, and one of last year's IPOs on sale – as so often happens – for less than its issue price.

Senex Energy Ltd (ASX: SXY) – last traded at $0.635, down 13% in 12 months.

One of the most promising oil/gas producers in the Cooper Basin, South Australia, Senex Energy has trended down to its lowest point in 52 weeks despite outstanding June quarter performance figures and an increase of total 2P (proven + probable) oil reserves of 50% in the past month.

Also the home of Beach Energy Limited (ASX: BPT) and Cooper Energy Ltd. (ASX: COE), the Cooper Basin is home to some of Australia's best oil and gas opportunities. Despite the potential, many of these companies have seen their shares sold off recently, leaving the shrewd investor with a buying opportunity.

With its current low price and newly improved reserves, is Senex Energy a buy? Absolutely.

Buru Energy Limited (ASX: BRU) – last traded at $0.735, down 60% in 12 months.

Another junior oil producer suffering from a sell-off lately, Buru Energy holds its tenements in the Canning Basin in Western Australia, where its huge exploration permits will last it until at least 2024.

A partnership with several overseas companies including Mitsubishi of Japan provides a market for Buru's oil, and the recent transition from exploration to production and sales has delivered strong revenue so far this year.

As Buru accelerates its extraction and conducts cost-cutting and internal reorganisation efforts, I expect the company to increase both its revenue and overall profits, making today's price look quite reasonable.

Ozforex Group Ltd (ASX: OFX) – last traded at $2.28, down 14% in 11 months.

Less than a year out from its IPO, OzForex acts as another example of why it's not always sensible to buy into IPOs too quickly. Statistically speaking, you're likely to be able to pick up the IPO'd share at a better price if you wait a while.

This is certainly true with OzForex, with a decrease in profit of 7% on the prior period apparently disappointing investors, despite an overall revenue increase of 40%.

Since the full-year report was released in June, OzForex has trended down even further despite investors being informed in the report that the decrease in profit was due to a number of one-off expenses associated with the IPO and approach to UK company HiFX.

If you're a believer in OzForex, right now looks like a pretty good time to buy as it's trading below its IPO price, and profit should return to normal levels this year now that all of the one-off expenses have been dealt with.

That means that 3/3 companies in today's articles represent solid buying opportunities to investors, who I hope keep a stock of cash to snatch up bargains as and when they appear.

I know a lot of investors today will be most interested in the huge potential upside associated with the two oil explorers, and to you I say:

Why not check out our top analyst's free report into the black gold and add a few more potential winners to your watch-list?

If you're interested, simply enter your email address into the link below – it takes less than 30 seconds, and is completely FREE!

The post 3 companies hitting 52-week lows: Is this the bottom? appeared first on The Motley Fool Australia.

It wasn't the only oil and gas company to get whacked today either. Senex Energy Limited (ASX: SXY) lost 2.8%, while Strike Energy Ltd (ASX: STX) was hammered down 4.4%. Horizon Oil Ltd (ASX: HZN), in the midst of a merger with Roc Oil Company Limited (ASX: ROC) also had a down day, losing 1.3%.

Perhaps the biggest concern was a report released by EnergyQuest. The report notes that Russia's giant $400 billion deal to supply China with gas over 30 years, has serious consequences for Australia's liquefied natural gas producers. This in turn may feed down into Australia's smaller oil & gas explorers, such as Buru.

EnergyQuest says they need to drastically cut costs to remain competitive, with Australian LNG plants estimated to cost US$3,500 per tonne of capacity per year (tpa), compared to Gazprom's China project costs of around US$2,000 tpa.

Other large oil and gas companies have downplayed the threat, and with Buru holding large swathes of acreage in the Canning Basin in WA, it could be worthy of a closer look.

If Buru is not for you, there are plenty of other oil and gas stocks that could be a better play, including 3 we have identified in the following report.

The post Why Buru Energy Limited saw its shares sink today appeared first on The Motley Fool Australia.

Here are the top five best performing stocks in the index today:

• Echo Entertainment Group Ltd (ASX: EGP) soared 12% to $2.70
• Paladin Energy Ltd (ASX: PDN) climbed 4.7% to 45 cents
• Beadell Resources Ltd (ASX: BDR) gained 3.9% to 66.5 cents
• Mount Gibson Iron Limited (ASX: MGX) added 2.4% to 84.5 cents
• Western Areas Ltd (ASX: WSA) closed up 2.2% to $3.76

These are five of the worst performing stocks today:

• Magellan Financial Group Ltd (ASX: MFG) dropped 6.6% to $12.12
• Buru Energy Limited (ASX: BRU) fell 6.3% to $1.195
• Bradken Limited (ASX: BKN) slipped 4.4% to $4.59
• Veda Group Ltd (ASX: VED) lost4.3% to $2.22
• Carsales.com Limited (ASX: CRZ) closed down 4.1% at $10.45

The post Best and worst stocks on the ASX today appeared first on The Motley Fool Australia.

Here are the top five best performing stocks in the index today:

• Skilled Group Ltd. (ASX: SKE) soared 5.7% to $2.78
• Buru Energy Limited (ASX: BRU) climbed 5.3% to $1.295
• Bradken Limited (ASX: BKN) gained 4% to $4.45
• Flexigroup Limited (ASX: FXL) added 3.8% to $3.57
• Myer Holdings Ltd (ASX: MYR) closed up 3.6% at $2.33

These are the five worst performing stocks today:

• OzForex Group Ltd (ASX: OFX) dropped 3.8% to $3.07
• Mesoblast Limited (ASX: MSB) fell 3.4% to $5.09
• Trade Me Group Ltd (ASX: TME) slipped 3.4% to $3.69
• G8 Education Ltd (ASX: GEM) lost 3.3% to $4.66
• Seven West Media Ltd (ASX: SWM) closed down 2.8% at $1.915

The post Best and worst stocks on the ASX today appeared first on The Motley Fool Australia.

Investors may well be sitting on the sidelines waiting for tonight's (Australian time) US non-farm payrolls data and the US unemployment rate. Either could trigger the US Federal Reserve's current tapering of its quantitative easing program.

Here are the top five best performing stocks in the index at midday today:

• Paladin Energy Ltd (ASX: PDN) is up 4.4% at 47 cents
• Skilled Group Limited (ASX: SKE) has gained 4.2% to $2.74
• NRW Holdings Limited (ASX: NWH) has risen 4.1% to $1.135
• Buru Energy Limited (ASX: BRU) has added 2.9% to $1.265
• Mount Gibson Iron Limited (ASX: MGX) saw gains of 2.8%, trading at 91 cents

These are the five worst performing stocks at midday today:

• Magellan Financial Group Limited (ASX: MFG) has slipped 3.5% to $13.64
• Ozforex Group Limited (ASX: OFX) is down 2.8% to $3.10
• David Jones Limited (ASX: DJS) has lost 2.8% to $3.16
• Horizon Oil Limited (ASX: HZN) fell 2.6% to 30.2 cents
• Lynas Corporation Limited (ASX: LYC) has fallen 2.5% to 19.5 cents

The post Best and worst stocks on the ASX at midday appeared first on The Motley Fool Australia.