Are Energy Penny Stocks the cure for the market downturn?
3 Penny stocks to watch as the energy sector continues to climb
Over the past week or two, we’ve seen Energy penny stocks continue to climb in value. There are several reasons for this. Before we get into the causes, let’s take a look at some of the symptoms. On Tuesday, the international benchmark for oil, Brent Crude, hit $ 80 a barrel for the first time in nearly three years. While this is great news for investors in penny stocks and oil companies, it could signal a tightening in the oil industry in the coming months. If we look at the ‘why’ we see that there are several reasons for this.
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On the one hand, Hurricane Idea had a considerable effect on several oil platforms in the Gulf of Mexico. Since the Gulf is one of the country’s main oil suppliers, the shortage could have a big impact. In addition, OPEC plans to meet on October 4 to discuss the potential for increased oil supplies to tackle several global shortages. These shortages are seen in places like Britain, where gas lines are incredibly long.
In a note, Goldman Sachs analysts said “the current deficit in global oil supply and demand is larger than expected.” If we combine all of that with increased demand in the United States as people go back to work and start traveling again, we see the situation we are in right now. So, with all of that in mind, let’s take a look at three energy penny stocks to watch out for right now.
3 Energy Penny Stocks To Watch In October 2021
- New Concept Energy Inc. (NYSE: GBR)
- Camber Energy Inc. (NYSE: CEI)
- Transocean Ltd. (NYSE: RIG)
New Concept Energy Inc. (NYSE: GBR)
New Concept Energy Inc. is an oil and gas penny stock that has climbed over 17% in the past five days. Despite a significant drop today, which is most likely a correction, since the start of the year, GBR shares have risen by over 140%. Over the past twelve months, that number has climbed to over 240%, indicating significant bullish sentiment.
Since its inception in 1978, the company has acquired more than 153 gas producing wells and 44 non-producing wells. Currently, New Concept’s mining leases cover approximately 20,000 acres. The company’s properties are focused on the Athens County and Meigs County areas of Ohio, as well as various parts of West Virginia.
In August, the company released its second quarter results for 2021. In the results, its net income from continuing operations for the quarter ending June 30, 2021 was $ 49,000. It also incurred a net loss of $ 57,000 from continuing operations year over year. New Concept received additional income of $ 100,000 from the sale of a receivable that had previously been fully reserved.
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Despite the lack of company-specific news, GBR stock managed to climb over 30% on September 27, before falling around 17% the next day. It should be noted that the volume of the company is also more than 4 times the market average. Given all of this information, will GBR make your list of penny stocks to watch?
Camber Energy Inc. (NYSE: CEI)
Camber Energy Inc. is a penny-listed stock that is currently at the top of the list for many investors. If you are trading penny stocks or blue chips, you have probably followed the one month CEI gain of almost 500%. Although no one makes gains like those past penny stocks, it is still an amazing number to consider. If you are new to Camber Energy, it is a Texas-based oil and gas company. Primarily, the company acquires projects, develops them, and then sells crude oil, natural gas and natural gas liquids. As of March 31, 2020, the company had 133,442 million barrels of oil equivalent for its total estimated proven reserves.
Last month, Camber announced that it had obtained an exclusive IP license for a patented carbon capture system. This IP license relates to the ESG Clean Energy system of ESG Clean Energy LLC. The license is exclusive and unlimited in Canada and limited to the United States. This system can generate clean electricity from internal combustion engines and uses waste heat to capture approximately 100% of the engine‘s CO2 without losing efficiency.
“In my opinion, this transaction positions us as an industry leader in terms of our ability to meet the power generation needs of commercial and industrial organizations while helping them reduce their carbon footprint to meet regulatory requirements or simply to better follow ESG practices.
President and CEO of Camber, James Doris
Since this announcement, the CEI share has steadily increased in value. Over the past month, CEI stock has gone from an average of $ 0.50 per share to over $ 3 per share as of September 28. Given its major gains over the past few months, will CEI stock be on your list of penny stocks to watch right now?
Transocean Ltd. (NYSE: RIG)
Another oil and gas penny stock that we have discussed frequently over the past few months is Transocean Ltd. With over 20% gains over the past five days and 350% over the past year, it’s no wonder that so many investors are paying attention to Stock RIGs. Transocean provides offshore contract drilling services to a variety of companies around the world.
The company subcontracts drilling platforms, drilling equipment and work crews for oil and gas wells. Transocean currently owns or has a partial interest in 37 mobile offshore drilling units. These units include 27 ultra-deep water floats and 10 harsh environment floats, with 2 more ultra-deep water drill ships under construction.
On August 26, the company was awarded a $ 252 million contract for a Newbuild ultra-deep water drillship. This contract was awarded by BOE Exploration & Production LLC and concerns the Deepwater Atlas. The contract included a mobilization fee of $ 30 million. It also offers a significant opportunity for performance bonuses based on agreed operating metrics.
“We are extremely happy to have been awarded the first contract for the Deep Water Atlas; the first of our two 8th generation ultra-deep water rigs to enter the market in 2022, both of which will be equipped for 20,000 psi ultra-deep water well operations. ”
Jeremy Thigpen, President and CEO of Transocean
In the month since this announcement, RIG stock has risen significantly in the market. And, it should be noted that RIG’s stock is likely to increase due to the increased demand for oil and gas at this time. While stocks are somewhat volatile, it might be worth taking a look at RIG stock for your penny stock watch list.
What Penny Stocks are you looking at right now?
Finding the best penny stocks for your shopping list can be difficult. But, with so many choices, choosing the most valuable ones will help you make money with penny stocks.
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In 2021, it is a question of keeping abreast of current events and current events. So, given all of these moving parts, what penny stocks are you looking at right now?