5 Small-Cap Energy Stocks to Power your Portfolio

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5 Small-Cap Energy Stocks to Power your Portfolio

Forest Oil

Forest Oil 185 5 Small Cap Energy Stocks to Power your PortfolioAfter falling more than 30% through mid-July, things are finally looking up for Forest Oil (FST). That’s because the small-cap energy producer recently began getting unsolicited bids for its Texas Pan-handle delineated oil, natural gas and natural gas liquids assets. The acreage in that region could be a significant opportunity for Forest.

According to analysts at Stifel Nicolaus, the sale of these assets could raise between $1 billion and $1.2 billion for the struggling producer. That provides plenty of firepower for Forest to pay down debt as well, as accelerate development of its rock-solid Eagle Ford acreage.

In the last year or so, FST has begun to move away from dry gas and more toward liquids production. The E&P firm has already added considerable acreage in the Permian Basin — 111,000 net acres in East Texas, which will enable Forest to access potential oil resources in several oil-bearing pay zones. The cash infusion will only strengthen that potential.

FST has all the makings of a doubler and represents a great turnaround play now that it has the real opportunity to focus on liquids assets.


Article printed from InvestorPlace Media, http://investorplace.com/2013/08/five-electric-small-cap-energy-stocks/.

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