Canadian Superior Energy: On the Brink of Hitting the Jackpot?

With natural gas (UNG) and oil (USO) pulling back from recent highs, energy names have also corrected. That being said, maybe now is the time to look for some gems. Canadian Superior (SNG) and Challenger Energy (CHQ) are my favorite energy plays right now. Traders in our forum have heard me discuss the prospects of these two companies for over two months. The next step was to wait for the correct timing in regards to its “Bounty” well findings due around August 15th. Other factors such as stabilizing sentiment on the energy sector and daily technicals were also important factors. The fundamentals of both companies have not changed. Here is the background and my bullish case for both of them.

SNG is a $600 million Calgary, Canada-based exploration company. CHQ is a $125 million Calgary-based E&P energy company. SNG has operations in Western Canada and off the coasts of Nova Scotia and Trinidad & Tobago. Trinidad & Tobago is the largest supplier of LNG to the US. Trinidad is also Latin America's second-largest energy producer after Venezuela.