Oil prices have been depressed for more than two years, and the falling price has pushed some oil stocks below $1 per share, making them penny stocks. However, the International Energy Agency has predicted an end to the world oil oversupply in late 2017, and the Organization of Petroleum Exporting Countries (OPEC) has entered into two agreements to limit production levels.

These developments pushed oil above $50 per barrel, but the price has continued to dip below that level occasionally, struggling to move upward. The Energy Information Administration (EIA) has issued a forecast for West Texas Intermediate (WTI) prices of just over $50 per barrel for the remainder of 2017. This implies that oil prices will continue to fluctuate around the $50 level, suggesting that it may be difficult for the commodity's prices to maintain their recent gains into year end.

The fact that these low-priced energy stocks have survived the oil slump may speak to their resilience. They were chosen based on their longevity and potential to profit from higher oil prices, as well as the EIA's prediction for higher natural gas prices into 2018. All figures are current as of Dec. 7, 2017. (To improve your trading skills, Investopedia Academy has a day trading course online.

EnerJex Resources, Inc. (ENRJ)

EnerJex is listed on the New York Stock Exchange. It was a $10 stock in 2013 but has since fallen to approximately $0.23 per share as of this writing. EnerJex makes its living producing oil and gas through leases in Kansas, Colorado, Nebraska and Texas. The company has been paring its net operating income losses for the past four quarters.

Petro River Oil Corp. (PTRC)

The stock price for Petro River Oil saw a dramatic drop starting in 2013, and it is now around $1.58 per share. The company develops oil internationally, with a presence in Oklahoma, California, Ireland, England and Denmark. Petro River Oil uses 3D seismic analysis to find oil resources. The company has shown increased cash reserves in the past five quarters, so it could be in a position to acquire assets to take advantage of higher oil prices. (For more, see: 5 Biggest Risks Faced by Oil and Gas Companies.)

  • Average Volume: 16,635
  • Market Cap: $25.032 million
  • P/E Ratio (TTM): -9.88
  • EPS (TTM): -$0.16

EXCO Resources, Inc. (XCO)

EXCO Resources is another penny stock currently trading on the New York Stock Exchange. It dropped below $1 per share in December 2016, and it is currently trading at approximately $0.65. Total revenues have been decreasing for the past four quarters, and after three quarters of increasing operating income, the company posted an operating loss for the quarter that ended Sept. 30, 2017. The consensus recommendation from analysts is Underperform. However, EXCO obtains 90% of its revenue from natural gas, and positive forecasts for that commodity could bode well for the company.

  • Average Volume: 358,071
  • Market Cap: $14.072 million
  • P/E Ratio (TTM): 0.09
  • EPS (TTM): $7.59

Granite Oil Corp. (GXOCF)

Granite focuses on the Western Canada Sedimentary Basin. The company declared a dividend of $0.035 per share in May 2017 and again in October 2017. Management has reduced costs significantly to make up for declining oil prices, and debt is relatively low. The fact that the company has not eliminated its dividend bodes well, and it currently offers a dividend yield of over 14%. Granite's stock price has fallen since the beginning of April to around $2.35 per share. This is one to watch to see if it turns around.

  • Average Volume: 8,665
  • Market Cap: $81.573 million
  • P/E Ratio (TTM): -58.75
  • EPS (TTM): -$0.04

The Bottom Line

There is a saying among investors that goes, "a rising tide lifts all boats." But the rising tide of oil prices won't lift a leaky boat. Penny oil stocks on this list have seen better days. They are not startups; they are has-beens. In other words, these plays are for those who see significant odds that the companies can turn around. To be sure, the drop in oil prices was not the fault of any of these companies, but that doesn't change the fact that they will have to make some quick moves to reverse their financial fortunes. (For additional reading, check out: A Guide to Investing in Oil Markets.)

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