Could this finally the bottom for AIM oil stocks?

Many of the most heavily owned oil and gas names in AIM have been decimated in the last 3 months. Xcite Energy, Chariot Oil and Gas, Encore to name a few.

Encore Oil's share rose 8.5 percent yesterday to 60p after director share buys totalling 263,000 shares at an average price of 56.5p. The shares have fallen from 140p on some mixed drilling news from the North Sea over the last couple of months.

Xcite Energy shares hit a low of 128p yesterday which on valuation grounds makes no sense. The core area of the Bentley field is estimated to be worth $1.35 billion or over £5 a share according to the official Reserves Report issued in May. The "hot money" has flowed out of XEL into the likes of Rockhopper, and undoubtedly it will return when news of DECC approval is obtained during the summer.

Some good buying opportunities out there for sure and I have topped up on Xcite and bought into Encore.

Unlock the rest of this article with a 14 day trial

Unlock with Email
Unlock with Google

Already have an account?
Login here