Approach Resources (NASDAQ:AREX), Cimarex (NYSE:XEC), Magnum Hunter (Amex:MHR), Northern Oil & Gas (Amex:NOG), Swift (NYSE:SFY) Top E&P Picks of Canaccord for 2011

Approach Resources (NASDAQ:AREX), Cimarex Energy (NYSE:XEC), Magnum Hunter (Amex: MHR), Northern Oil & Gas (Amex: NOG), and Swift Energy (NYSE:SFY) were identified by Canaccord Genuity as their top exploration and production picks in oil and gas for 2011.

Canaccord said, "We still believe there is appreciable upside remaining in our best ideas despite a 25% run in our E&P coverage universe since mid-October. In our view, this upside will become clear over the next three to four months. While most are focused on 2010 year-end updates and 2011 outlooks, we are turning our attention to 2012. Assuming a relatively constant BTU relationship and producers continuing to invest in their highest IRR projects, we believe 2012 serves as an important inflection point for many of our covered companies. We are specifically focused on early-stage transformation stories with increasing leverage to oil and underappreciated growth stories with decreasing 2012 multiples and free cash flowing assets. With that backdrop in mind, the stocks that we believe are best positioned to outperform in 2011 include Approach Resources, Cimarex Energy, Magnum Hunter, Northern Oil & Gas, and Swift Energy."

Approach Resources closed Friday at $20.91, up $0.86, or 4.29 percent. Cimarex Energy closed at $88.22, down $0.18, or 0.20 percent. Magnum Hunter closed at $6.24, up $0.06, or 0.97 percent. Northern Oil & Gas closed at $25.19, up $0.19, or 0.76 percent. Swift ended Friday at $39.50, down $0.10, or 0.25 percent.

Canaccord maintains a "Buy" rating on all the companies listed above. The price target on them are $95 on XEC, AREX at $24, $6.75 for MHR and $48 for SFY.