The Tiny African Nation With the Two Best Oil Stocks You’ve Never Heard of

Todays top stocks to buyProduction will soon be underway in a country that’s set to boost sub-Saharan Africa’s oil output. Want to get in early before the herd? Here are the two best, unknown African oil stocks to buy today…

July 31, 2013 was an historic day…but you probably weren’t aware.

A landmark announcement was made half a world away in a country known more for its safari wildlife than its natural resources…

Commercial viability was confirmed at one of the Africa’s newly discovered oil basins.

The specific region is known as the Great Rift Valley – a 450-mile long volcanic trench running north to south.

Historically, the Valley has been described as “the cradle of mankind”, as million year old human ancestral remains have been discovered there. But recently oil explorers have discovered a string of oil fields within the revered place.

By some estimates, the Valley could contain as much as 10 billion barrels of crude.

What’s more, this incredible find happens to be smack dab in the middle of a nation not known for hosting commercial quantities of oil. In fact, the U.S. Energy Information Administration notes the country “does not produce or hold any proven hydrocarbon reserves” — that is, until now.

So what African nation am I talking about?

Kenya, east Africa’s largest economy.

According to oil and gas company Afren plc (LSE:AFR), of the nearly 34,000 wells drilled in Africa, less than 500 have been drilled in the east thus far.

West Africa is where much of the continent’s oil industry is concentrated in – specifically Nigeria. Nigeria is currently the world’s sixth largest oil exporter in the world. So not surprisingly, most energy developments coming out of Africa tend to originate out west.

The Shift is Coming

Despite Kenya and other East African states being largely unnoticed, there’s no mistaking the oil industry in the east has a very bright future ahead.

In fact, if reserve estimates hold true, there would be enough oil found in the Great Rift Valley to power Kenya for three centuries.

Drilling may be minimal to date, but recent exploration projects have come fast and furious. As of the end of 2012, all available oil blocks issued in Kenya have already been snatched up.

Additional blocks are expected to be up for grabs sometime in the near future, with the Ministry of Energy intending to break up existing blocks that were relinquished by some companies.

Indeed, this is a very exciting time for oil investors looking to get in on “the next big thing”.

Which brings us to two of today’s best oil stocks to buy…

Best Oil Stocks to Buy Now:

First is UK-based oil and gas giant Tullow Oil (LSE:TLW, OTC:TUWLF).

Tullow is a large oil and gas multi-national with over 150 E&P licenses across 25 countries with a specific focus in Africa.

And second is Canadian small cap explorer Africa Oil (TSXV:AIV, OTC:AOIFF).

Tullow and Africa Oil have partnered to become the most active operators in Kenya.

Working together, the two companies began drilling and testing for oil in the Great Rift Valley back in January 2012 with their Ngamia-1 and Twiga South-1 wells.

Resources from the two discoveries are estimated to be over 250 million barrels. With a flow rate of 5,000 bpd per well, commercialization has been deemed viable.

Their more recent Etuko-1 well also struck oil this past May, bringing the total estimated resources from the three wells to 300 million barrels.

By the end of Q3 2013, the two companies plan to add a third rig to its exploration program.

“Now the world has woken up to East Africa. I’ve never seen a basin of this magnitude,” says Africa Oil CEO Keith Hill.

It’s estimated that Kenya is a mere three years away from being a full-blown oil production machine.

In the meantime, the growing interest in Kenya’s new energy frontier, along with having a strong backer like Tullow, is poised to push Africa Oil’s stock even higher.

The bottom line: if you’re looking to profit from an oil play that’s just getting started, African Oil and Tullow Oil are two of the best stocks to buy today.

Yours in profits,
Todays top stocks to buy
John Holt
for Top Stock Millionaire
Follow me on Google+, Facebook, and Twitter

Similar Posts: