Junior oil explorer and producer Maverick Drilling and Exploration Ltd (ASX: MAD) has jumped around 14% in afternoon trade on moderately heavy volumes despite releasing no specific news to the market.
The stock has dropped in tandem with global oil prices to give up around 55% of its market value over the past year and today's buyers may be speculating on the company's turnaround potential.
The business has the Blue Ridge Dome producing oil field and its experienced North American management team are on the hunt to acquire long-life U.S. onshore assets or companies. If it has the financial firepower now might be the time to act given the asset write-downs across the sector and likelihood of picking up a bargain or two.
Investors will be keeping an eye on announcements to the market that may attract the interest of institutional investors with the capacity to send the share price considerably higher than 16.5 cents.
Other large-cap oil businesses on the nose include Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL). These two may be a better bet for more conservative investors who expect the price of the black gold to increase if the supply and demand equilibrium is re-orientated.
