Oil and gas companies have been rallying strongly in 2018 on the back of a rising oil price and a lower Australian dollar. When it comes to evaluating oil and gas stocks this late in the cycle, it’s the smaller more leveraged plays that are likely to rise the most. 

Senex is a company that is fast tracking its projects. It’s getting ready to capitalize on years of good deal making. It has secured funding for key projects and hit key milestone. To top it off, it was awarded the first of 13 exploration tenements to be handed out by the Queensland government. When looking at tenements, it pays to look at the surrounding tenements and the quality of discoveries. The Atlas gas field, which was the tenement awarded by the Queensland government, is surrounded by tenements owned by oil giant Shell. 

This is a company that is lowering unit costs at a time when oil prices are rising, which is a beautiful combination. It is a higher risk investment but at this part of the global economic cycle, investments tend to get riskier and short time framed to find above average returns.