Buy these two oil and gas stocks

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BIRCHCLIFF ENERGY $9.63 (Toronto symbol BIR; TSINetwork Rating: Speculative) (403-261-6401; www.birchcliffenergy.com; Shares outstanding: 263.0 million; Market cap: $2.4 billion; No dividends paid) explores for, develops and produce oil and gas, mainly in the Peace River Arch area near the Alberta-B.C. border. In the three months ended June 30, 2016, Birchcliff’s cash flow per share dropped sharply, to $0.09 from $0.30 a year earlier. A deep cut in oil and gas prices offset a 2.7% rise in daily production. In June 2016, the company bought Encana Corp.’s Gordondale natural gas fields in B.C. for $625 million in cash. Encana (symbol ECA on Toronto) is a recommendation of our Successful Investor newsletter. The deal was a big one for Birchcliff: the purchase price was equal to more than half of its current market cap; and Gordondale expanded its daily production by 55%, to 65,000 barrels of oil equivalent from 42,000. To pay for the purchase, the company sold 107.5 million shares at $6.25 each to raise…