Up to 2,000 kilometers of pipeline have or are being laid to get reserves to market. So discoveries made now are much less expensive to commercialize than they were 10 years ago. The big players include Woodside Petroleum, Santos, Fletcher Challenge Energy and Oil Search. It has a lot of growth ahead from the Gobe field, potential growth from the Moran field and gas projects, and a large portfolio of undeveloped gas and oil reserves. Add to that a strong management team and an appealing corporate profile.
Management has an excellent, aggressive track record.
Another good medium-sized pick is Novus Petroleum. The stock is fully valued, but they still have a lot of ongoing exploration and undeveloped gas reserves. It is focused in Asia, with operations in Indonesia, Thailand, Australia and the Philippines. It is well managed and would be attractive to a company trying to establish an Asian business. Tap Oil also has lots of potential.