The Junior Oils Trust has sold out of bonds to take advantage of the growing demand for oil.
The Trust has liquidated one third of the fund’s bond portfolio in order to invest the proceedings, and cash holdings, into equities related to companies which will benefit from heightened oil demand.
Angelos Damaskos, the chief executive officer and fund advisor for the fund, says “either the oil price is expected to drop significantly or that now is a good buying opportunity for those who, like us, believe oil prices are supported at current levels.”
“The companies we have invested in should prosper in an environment of growing demand for oil.”
Damaskos identifies Caza Oil and Gas as a “long term favourite” based on “healthy cash reserves, growing production and an active drilling programme targeting mainly low-risk shallow fields.”
The fund has taken a new position in Otto Energy, an Australian company focusing on the Philippines as it is “strategically placed with growing production that can support its drilling programme for the development of some highly prospective acreage.”