International expansion is propelling the fortunes of these energy companies, says Doug Casey of Casey Energy Report.

We're recommending three companies as a Buy to either initiate or add to your positions: East West Petroleum (Vancouver: EW), PRD Energy (Vancouver: PRD), and Stream Oil and Gas (Vancouver: SKO).

At the risk of insulting your intelligence, I first have to remind everyone not to chase these companies. We're currently in very weak resource markets, so be patient and let the stock prices come to you.
 
PRD Energy received another exploration license in Germany covering approximately 200,000 acres. The company is focused on bringing North American technology to mature basins in Germany.
 
If the concept works, it would be the equivalent of finding another Bakken in a country that is desperate for energy diversification away from Russia and the ongoing Putinization of Europe. It'll be a few months yet until we see some drilling results, but I have faith in PRD's management as well as the overall potential of the project.
 
The latest good news from Stream Oil and Gas has been largely ignored by the market: The company has just signed a gas sales agreement with Thermo Energy Albania. Under the agreement, Stream will have to provide enough gas to power a 24-megawatt (MW) natural gas facility. SKO will be working to increase its gas production to meet this demand, which is approximately 6.5 million cubic feet per day.
 
What's significant about this development is the price Stream will receive: $8.90 per thousand cubic feet, almost three times higher than the Henry Hub natural gas price. This makes the economics of Stream's Delvina natural gas field much better, and the financials should reflect this fact once the production begins in the second quarter of 2013.
 
Though East West has been a disappointing company in our portfolio, there's reason to believe it'll have a much stronger year in 2013. The company has 13 wells planned for drilling this year, which means it'll have steady news flow for the year.
 
Not only are we going to see its Romania properties finally get drilled, but we'll also see what results East West can get on its newly acquired New Zealand projects.

Given the success of its partner TAG Oil (T.TAO) in New Zealand, I'm optimistic that East West will be able to find an economic oil deposit in the country. Once the drill rigs start turning in Romania and New Zealand, it won't be a stretch for the stock to start trading north of C$0.60 per share.

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