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Eni SpA’s (E - Analyst Report) joint venture partner KrisEnergy revealed that the Italian oil major has stopped work at a 15.2 meter hydrocarbon column in Ca Ngu-1 exploration well in Block 120, offshore Vietnam.

Since the well did not come across any significant volume of hydrocarbons, the well has been plugged and abandoned. The well encountered oil and gas in the primary objective that confirmed the presence of petroleum system in the area.

Per KrisEnergy, wireline log data established the existence of gas in the Pliocene sandstone reservoirs and a 15.2 meter hydrocarbon column in the Miocene carbonate reservoir. The data provided by the drilling of well Ca Ngu-1 is likely to be beneficial for future exploration within Block 120, which is believed to hold multiple exploration plays.

Drilling operations were suspended due to a string of strong typhoons which passed through the region requiring the evacuation of crew members from the semisubmersible rig Songa Mercur on several occasions.

The Ca Ngu-1 well, which started drilling on Oct 10, reached a total depth of 4,232 feet (1,290 meters). The Ca Ngu-1 well is located in a water depth of around 885 feet (270 meters). Block 120 spans 3,130 square miles covering the Quang Ngai Graben and the Tri Ton Horst where the water depth ranges from 164 feet (50 meters) to 3,609 feet (1,100 meters).

Eni, the operator of Block 120, holds a working interest of 50%. Other partners KrisEnergy and Neon Energy (Song Hong) Pty Ltd hold 25% each.

Eni carries a Zacks Rank #4 (Sell). Some better-ranked stocks in the oil and gas sector include Harvest Natural Resources Inc. (HNR - Snapshot Report), Blueknight Energy Partners, L.P (BKEP - Snapshot Report) and Tesco Corp. (TESO - Snapshot Report). All these stocks hold a Zacks Rank #1 (Strong Buy).
 

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