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Pumpjacks pump crude oil near Halkirk, Alta., June 20, 2007.Larry MacDougal/The Canadian Press

Mark Bunting is a host at Bloomberg TV Canada, and the publisher of The Capital Ideas Digest, a weekly compilation of investment ideas based on a variety of research reports. The Globe and Mail provides marketing services and receives compensation from its parent company, Capital Ideas Research. Try it now to get your first month for free.

Mackie Research recently released a research report entitled "Under-leveraged, Undervalued Growth Stocks with Momentum in 2017."

The stocks Mackie selected each have market capitalizations of less than $100-million (Canadian), and may not be suitable for more risk-averse investors. Having said that, here are three oil and gas stocks that Mackie Research believes have strong potential for solid gains.

Prairie Provident Resources Inc. (PPR-T) Rating: Buy. Price target: $2.

  • “High working interest in a large land base, with a primary focus on the development of its covenantal oil plays within the Wheatland, Princess and Evi core areas in Alberta.
  • Prairie Provident holds a large land base in Quebec that holds significant potential for natural gas within the Utica shale. New legislation could allow oil and gas exploration and appraisal drilling to recommence in 2017.
  • Drilling program targeting the Alberta Manville play to boost production to about 6,000 barrels of oil equivalent per day by the end of 2017.
  • Actively reviewing acquisition opportunities within its core areas that could accelerate growth.
  • Highly undervalued trading at a 2017 enterprise value to discounted cash flow multiple of just 2.7 times.

Through an active drilling program targeting the Manville [play], we expect Prairie Provident to demonstrate substantial production and cash flow growth in 2017 while providing investors a free option on the Quebec Utica play."

Condor Petroleum Inc. (CPI-T) Rating: Buy. Price target: $3.25.

  • “Condor offers lower risk exploration upside in the Thrace Basin in Western Turkey and company-maker exploration potential in the Pre-Caspian Basin in Kazakhstan.
  • Four well drilling program in Turkey is nearing completion. The first three wells were successful, likely adding significant reserves, with results of the fourth well expected shortly.
  • First production in Turkey on track for the second quarter of 2017.
  • High impact Korumbet NW exploration well in Kazakhstan to spud in the fourth quarter of 2017.”

TAG Oil Ltd. (TAO-T) Rating: Speculative Buy. Price target: $1.50.

  • “TAG has high quality producing and exploration assets located onshore in the Taranaki Basin of New Zealand and development and exploration potential in the newly acquired the PL 17 block in the Surat Basin in Australia.
  • Well-funded with no debt and net positive working capital of $19-million as at Sept. 30, 2016.
  • Growing production base through low risk/low cost well re-completions, infill drilling and water-flood program.
  • TAG recently tested natural gas and condensate from the Kapuni formation in the Cardiff-3 well with tremendous resource potential which could be unlock with additional testing and drilling.
  • TAG plans to expand through acquisitions and is currently evaluating opportunities in New Zealand and in the Australasian region.”