Stock Updates: Aroway Energy, Hyperion Exploration, Palliser Oil and Gas

Aroway Energy ARW.V 0.24 [-0.02]: This stock, the one that got away, has performed superbly in the past months particularly in a difficult year such as 2011 where it outperformed its junior peers. Today they announced they will be increasing their 3D coverage by 75% on their 101 sections of land. Obviously, the results will add a significant number of drilling prospects to their inventory targeting the Leduc formation. If they keep up the same caliber of execution, they will be doubling their production in 2012 from 669 boe/d to 1,200 boe/d!

Hyperion Exploration HYX.V 0.20 [+0.04]: In terms of execution, Hyperion executed superbly just like Aroway but did not get the market recognition for it yet. Hyperion released its guidance for 2012 yesterday announcing a $43 million program. Average production for 2012 will be at least 65% higher than in 2011 and the company is looking to exit the year at close to 2,000 boe/d with more than 65% in liquids. Any way you look at it, this Cardium player is undervalued and I hope to see the share price get some recognition this month. With analyst targets around the $2 mark, there’s a lot of ground to cover in price appreciation.

Palliser Oil & Gas PXL.V 0.115 [+0.005]: If HYX is undervalued; PXL is even more undervalued at this price level. A 98% heavy oil company trading almost at natural gas metrics! What’s wrong with that picture? Palliser released its 2012 guidance yesterday announcing a $30M capex program. Production should average between 2,250 and 2,350 barrels which is at least 64% higher than in 2011. The company plans on exiting the year at up to 2,800 bopd. At these price levels, Palliser will be trading at a valuation of ~$25k/flowing barrel in 2012 while in reality it should be closer to a double!

What do you think of these companies?