While Woodside Energy Group Ltd (ASX: WDS) and Santos Ltd (ASX: STO) are popular options, they are not the only ones out there.

In fact, Bell Potter has just initiated coverage on one speculative oil share and has good things to say about it.

Which ASX oil share?

The share that Bell Potter has been running the rule over is Omega Oil & Gas Ltd (ASX: OMA).

Bell Potter has described the investment opportunity here as a geology-led unlock of an unconventional oil and gas play.

Commenting on the company, the broker said:

OMA is taking a geology-led approach to unlocking a significant new unconventional oil and gas play in Queensland's Taroom Trough. Its acreage is located within 50km of existing gas pipelines and 150km from the Wallumbilla Gas Hub. In 2025, the Canyon-1H (horizontal) well flowed oil at peak daily rates of 452bbl oil and 0.60mmscf gas. SLB's (Schlumberger) Estimated Ultimate Recovery for a 2,000m horizontal well is 0.95mmboe with OMA's estimated potential gross wellhead revenue of $93m; at the time of assessment, OMA's acreage could accommodate up to 418 wells.

OMA's most recent 2C Contingent Resource estimate of 1.7tcf (October 2023) does not yet incorporate this latest technical success and geological data. OMA is also working adjacent joint venture acreage with its major shareholder Tri-Star and Beach Energy (BPT, Hold, Target Price $1.15/sh), and has a 19.08% interest in Elixir Energy (EXR, not rated) which is operating on the western flank of the Taroom Trough.

Initiation with buy rating

According to the note, the broker has initiated coverage on the ASX oil share with a speculative buy rating and $1.45 price target.

Based on its current share price of 85 cents, this implies potential upside of 70% for investors over the next 12 months.

Commenting on its recommendation, Bell Potter said:

OMA is leveraged to de-risking of a new unconventional oil and gas play located close to Australia's east coast energy markets. Over 2026-27, OMA's appraisal program should add significant scale to current its current Resource position and inform initial Reserves and production parameters. Australia's east coast gas market is attractive with established basins in decline, limited sources of new supply and secure demand from domestic and export customers. Oil prospectivity provides another strategic element to the OMA value case.

The post Top broker just slapped a buy rating on this ASX oil share appeared first on The Motley Fool Australia.

New high water mark

The company's shares hit a new 12-month high of 99 cents in early trade on Thursday before settling back slightly to 12.8% higher at 97 cents at the time of writing.

The shares have increased more than 300% over the past 12 months from lows of just 20 cents.

Thursday's share price appreciation is even more impressive, given the new money was raised at 84 cents per share.

The company said it had intended to raise $50 million but had increased the raise to $60 million after strong demand from existing and new investors.

Cornerstone investors in the raise included the Flannery family and Tri-Star Group.

Omega Managing Director Trevor Brown said the company was well-positioned to execute its plans.

We are moving decisively to capitalise on a unique window of opportunity in the Taroom Trough, with government support and market dynamics aligning to accelerate basin development and unlock badly needed new supplies of oil and gas.

This raise underpins an evolution of our execution strategy – undertaking larger diameter, longer, production-ready horizontal wells, with larger stimulation programs and extended flow testing.

This exciting program, scheduled to commence in June, will deliver maximum impact in the shortest possible timeframe, drilling across both our PCA Area and ATP 2081 to provide evidence of the scale and commercial potential of Omega's extensive acreage area.

At the same time, we are well placed to capture additional growth opportunities as they emerge.

The capital raise means that Omega is fully-funded to drill four vertical wells and one or two horizontal wells, including well stimulation and six-month flow testing.

The company is targeting an initial resource upgrade and reserves estimate in the fourth quarter of 2026.

Shares still looking attractive

The analyst team at Canaccord Genuity has had its eye on Omega for some time and earlier this month reiterated its $1.30 price target and buy recommendation.

The analyst team said, "In our view, regulatory tail risk is fast evaporating, and that could lead to higher corporate activity in a play which is proximal to existing infrastructure and underutilised LNG facilities."

Omega Oil and Gas was valued at $402.6 million at the close of trade on Wednesday.

The post Up more than 300% over a year, this ASX energy share is hitting new highs appeared first on The Motley Fool Australia.

If these bullish expectations prove out, those potential future gains will come atop the benchmark-smashing returns both stocks have already delivered over the past year.

The promising ASX energy shares in question are Elixir Energy Ltd (ASX: EXR) and Omega Oil & Gas Ltd (ASX: OMA).

So, just how well have they performed over the last 12 months?

Well, at Monday's closing price of 86 cents, the Omega share price is up 258% in a year. While that's impressive, Elixir Energy has charged ahead of that performance. At Monday's closing price of 14 cents, the Elixir share price has gained 383% in a year.

For some context, the All Ordinaries Index (ASX: XAO) is up 14.4% over this same period.

Now, here's why both stocks look well-positioned to keep outperforming.

Elixir Energy stock tipped to surge on Taroom Trough assets

Last week, the analysts at Euroz Hartleys released a bullish note on Elixir Energy.

That came after the ASX energy share announced it had commenced feasibility work with APA Group (ASX: APA) on a pipeline linking potential Taroom Trough gas production to the Wallumbilla Gas Hub. This will connect Elixir's gas project to east coast domestic and LNG markets.

Located onshore in Queensland, the broker said that interest in the Taroom Trough is rising "due to its scale and proximity to existing infrastructure servicing domestic gas (Wallumbilla) and LNG (Gladstone plants) markets".

As for Elixir Energy, Euroz Hartleys noted:

EXR's Lorelle-3H well recently achieved the longest horizontal well drilled in the basin to date with apparent high case reservoir properties in a deeper reservoir on the western flank, materially de-risking the upcoming flow test.

The broker added:

EXR holds the largest net acreage position and discovered resources in the Taroom with acreage neighbouring/directly on-trend to Shell and aligned to their appraisal strategy of gas-bearing (with associated oil) reservoirs in the Dunk sandstone.

Connecting the dots, Euroz Hartleys reaffirmed its speculative buy rating on the ASX energy share and increased its price target to 28 cents a share, up from the prior 19 cents.

That represents a potential upside of 100% from Elixir Energy's closing price on Monday.

Which brings us to…

ASX energy share riding positive political shifts

Last week also saw the team at Canaccord Genuity up its price target for Omega Oil & Gas shares. Omega owns roughly 19.4% of Elixir Energy.

Commenting on the changing political landscape that could favour the ASX energy share, Canaccord noted:

Queensland Premier David Crissafulli's visit to the Taroom Trough and subsequent press releases calling for the acceleration of permitting represents, in our view, a key turning point in the political narrative regarding oil and gas development.

The broker added, "Energy security will be a key focus in the coming years and Australia's stability and prospectivity should, we believe, result in improved capital allocation."

Canaccord reaffirmed its speculative buy rating and upgraded its price target for the ASX energy share to $1.30 a share, up from the prior 85 cents.

That's 51% above the Omega Oil & Gas closing share price on Monday.

The post Brokers name 2 skyrocketing ASX energy shares to buy today appeared first on The Motley Fool Australia.

This has led to both the federal and some state governments promising support for more oil and gas exploration on and offshore, including in Queensland, where Omega Oil and Gas Ltd (ASX: OMA) is active.

Major drilling program to start

Omega's upcoming drilling program is well timed, with the company recently announcing that it had secured a drilling rig for a drilling program of at least three and up to six more wells at its tenements in the Taroom Trough.

As the company said:

Subject to permitting, Omega plans to, and is fully funded to, drill at least four wells in our expanded 2026/27 program – a minimum of two wells on our existing PCA areas, and two wells on the recently awarded ATP 2081 (formerly PLR2025-1-9), realising the cost and efficiency benefits of a continuous campaign. Omega also maintains options to drill further horizontal and vertical wells. Omega's program is scheduled to commence in May 2026 following completion of preceding wells by other operators. The program aims to delineate reservoir and resource distribution over a broad area, identify "sweet spots", and mature Omega's resource and reserve base.

Omega said it had a "commanding" acreage position in the Taroom Trough both through its own tenements and via its 19.43% ownership stake in Elixir Energy Ltd (ASX: EXR).

Taken together, this gave Omega an interest in 5041 sq km.

Omega Managing Director Trevor Brown said:

With basin-wide drilling in the Taroom Trough during 2026, and our multi-well campaign fast approaching, Omega is entering an exciting growth phase. We believe that our upcoming program, scheduled to commence in May 2026, will further de-risk this exciting play and demonstrate the vast scale of the Taroom Trough's oil and gas resources.

Shares looking cheap

The analyst team at Canaccord Genuity said a recent visit to the Taroom Trough by Queensland Premier David Crisafulli "and subsequent press releases calling for the acceleration of permitting represents, in our view, a key turning point in the political narrative regarding oil and gas development''.

They added:

We upgrade our price target to $1.30 (from $0.85) and retain our speculative buy after increasing our risking. In our view regulatory tail risk is fast evaporating and that could lead to higher corporate activity in a play which is proximal to existing infrastructure and underutilised LNG facilities.

Omega shares were changing hands for 84.5 cents early on Thursday. The company was valued at $390.9 million.

The post Up 238% in a year, one broker thinks there's still way more upside for this ASX energy company appeared first on The Motley Fool Australia.