Shares in Legendary Investments (LSE: LEG) have jumped higher by as much as 24% in early trade this morning, adding to gains made over the past few weeks. Year-to-date the company’s shares have gained around 170% as investors have once again started to buy into Legendary’s growth story.

2015 was something of a transition year for Legendary. Throughout the year, its shares traded in a tight range of 0.07 to 0.1p. However, at the end of 2015 the company received a boost when creator Nick Jenkins paid a substantial premium to purchase a stake in Virtualstock Holdings.

A key investment 

Virtualstock is one of Legendary’s key investments. The company owns a 7% stake in the inventory and order management software firm, which counts the NHS as its primary client. Nick Jenkins acquired a “small stake” in Virtualstock, which sent the firm’s value up to £58m, a substantial premium to the previous valuation of £25m. Legendary’s stake in the company was subsequently revalued up to £4.1m, approximately 50% of Legendary’s current market cap.

And Virtualstock has continued to expand, winning two new contracts with leading retail clients earlier this year. As Virtualstock continues to expand, the company’s valuation will follow suit and Legendary’s investors will reap the benefits. That being said, Legendary is still a highly speculative investment vehicle, and while the company’s shares are heading in the right direction today, there’s no guarantee this will continue to be the case.

Key report 

UK Oil & Gas (LSE: UKOG) is heading higher today after the company revealed at the end of last week that it has commissioned a report to be published by Ernst & Young to assess the potential impact and benefit of tight oil extraction from the Kimmeridge limestones. The report hasn’t yet been published, but it’s clear how important the findings of this report could be for the company and its shareholders.

2016 is already shaping up to be a transformational year for UK Oil & Gas. The company has a number of assets across the south of England, several of which are already producing oil and revenue for the group, but the asset that’s attracted the most attention this year is the Horse Hill license. Recent testing has shown that the three intervals within the Horse Hill-1 well have produced a final aggregate flow rate of 1,688 barrels of oil per day. This is a flow rate that could generate hefty profits for UK Oil & Gas as it holds a 30% stake in Horse Hill Developments.

Nonetheless, UK Oil & Gas remains a speculative play on the UK’s fledgling onshore oil industry. If everything goes to plan, then the company could see its share price double or even triple from current levels. However, all early stage oil projects and oil companies are highly risky – this isn’t a sector for widows and orphans.

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Rupert Hargreaves has no position in any shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.