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Eni (E) Makes Major Onshore Oil & Gas Discovery in Algeria
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Eni SPA (E - Free Report) announced a significant oil and gas discovery with Sonatrach in Algeria's gas-rich Berkine North Basin.
The discovery is situated in the Zemlet el Arbi concession in the Algerian desert. It is operated by Eni and Sonatrach. The latest discovery is estimated to contain 140 million barrels of crude oil.
The companies drilled the exploratory well on the HDLE exploration prospect, situated about 15 kilometers from the Bir Rebaa North field processing facilities. The HDLE-1 well discovered light oil in the Triassic sandstones of Tagi formation. It encountered 26 meters of net pay of oil and gas, with excellent petrophysical properties.
HDLE-1 is the first well of the new exploration campaign planned for the Berkine North Basin. The exploration campaign involves drilling five wells in the North Berkine concessions. During the production test, the well delivered 7,000 barrels of oil per day and associated gas of 5 million standard cubic feet per day.
Since 1981, Eni has been contributing to Algeria’s growth, wherein it operates multiple concessions. The company has an equity production of 95,000 barrels of oil equivalent per day in the country. The latest discovery will back Eni’s near-field and infrastructure-led exploration strategy, enabling a rapid valuation of the new resources.
In December 2021, Sonatrach and Eni signed an oil exploration and production contract in the onshore Berkine basin area to expand their partnership in Algeria.The companies also signed a memorandum of understanding to work on initiatives aimed at Algeria’s energy transition.
Eni has a plan to drill four additional appraisal wells in Algeria. A second well, HDLE-2, will be drilled in April to confirm the additional capabilities of the structure extending in the adjacent Sif Fatima 2 concession. Beside this, Eni and Sonatrach are planning to proceed with the production phase of the latest discovery, with production expected in the third quarter of 2022.
Company Profile & Price Performance
Headquartered in Rome, Italy, Eni is one of the leading integrated energy players in the world.
Shares of Eni have underperformed the industry in the past six months. The stock has gained 12.2% compared with the industry’s 37.2% growth.
Oasis Petroleum is an independent explorer engaged in acquiring and developing oil and natural gas resources. As of 2021-end, OAS had a proved reserve base of 250.8 million barrels of oil equivalent (MMBoe) in the Williston Basin.
Oasis Petroleum is expected to see earnings growth of 198.8% in 2022. OAS currently pays a quarterly dividend of 58.5 cents ($2.34 annualized). It recently completed a $100-million share repurchase program.
Headquartered in Houston, TX, ConocoPhillips (COP - Free Report) is primarily engaged in the exploration and production of oil and natural gas. COP ended 2021 with proved reserves of 6.1 billion barrels of oil equivalent (Boe).
ConocoPhillips' earnings for 2022 are expected to surge 74% year over year. COP revised higher its expected 2022 return of capital to shareholders. The new guidance is at $8 billion, reflecting an increase from the previously mentioned $7 billion.
Calgary-based Imperial Oil Limited (IMO - Free Report) is one of the largest integrated oil companies in Canada. Its debt-to-capitalization of 19.3% is quite conservative versus 32.7% for the sub-industry to which it belongs. Apart from low leverage for its industry, Imperial Oil has ample liquidity, with cash and cash equivalents of C$1.5 billion.
Imperial Oil is expected to see earnings growth of 95% in 2022. IMO remains strongly committed to return money to investors via dividends. The company's board of directors recently approved a hike in the quarterly dividend payment. The new payout of 34 Canadian cents is 26% above the prior dividend. Further, adhering to the company's long-standing obligation to its shareholders, Imperial Oil revised its existing share purchase policy to buy up to 4% of outstanding common shares.
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Eni (E) Makes Major Onshore Oil & Gas Discovery in Algeria
Eni SPA (E - Free Report) announced a significant oil and gas discovery with Sonatrach in Algeria's gas-rich Berkine North Basin.
The discovery is situated in the Zemlet el Arbi concession in the Algerian desert. It is operated by Eni and Sonatrach. The latest discovery is estimated to contain 140 million barrels of crude oil.
The companies drilled the exploratory well on the HDLE exploration prospect, situated about 15 kilometers from the Bir Rebaa North field processing facilities. The HDLE-1 well discovered light oil in the Triassic sandstones of Tagi formation. It encountered 26 meters of net pay of oil and gas, with excellent petrophysical properties.
HDLE-1 is the first well of the new exploration campaign planned for the Berkine North Basin. The exploration campaign involves drilling five wells in the North Berkine concessions. During the production test, the well delivered 7,000 barrels of oil per day and associated gas of 5 million standard cubic feet per day.
Since 1981, Eni has been contributing to Algeria’s growth, wherein it operates multiple concessions. The company has an equity production of 95,000 barrels of oil equivalent per day in the country. The latest discovery will back Eni’s near-field and infrastructure-led exploration strategy, enabling a rapid valuation of the new resources.
In December 2021, Sonatrach and Eni signed an oil exploration and production contract in the onshore Berkine basin area to expand their partnership in Algeria.The companies also signed a memorandum of understanding to work on initiatives aimed at Algeria’s energy transition.
Eni has a plan to drill four additional appraisal wells in Algeria. A second well, HDLE-2, will be drilled in April to confirm the additional capabilities of the structure extending in the adjacent Sif Fatima 2 concession. Beside this, Eni and Sonatrach are planning to proceed with the production phase of the latest discovery, with production expected in the third quarter of 2022.
Company Profile & Price Performance
Headquartered in Rome, Italy, Eni is one of the leading integrated energy players in the world.
Shares of Eni have underperformed the industry in the past six months. The stock has gained 12.2% compared with the industry’s 37.2% growth.
Image Source: Zacks Investment Research
Zacks Rank & Stocks to Consider
Eni currently carries a Zack Rank #3 (Hold).
Investors interested in the energy sector might look at the following companies that presently flaunt a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Oasis Petroleum is an independent explorer engaged in acquiring and developing oil and natural gas resources. As of 2021-end, OAS had a proved reserve base of 250.8 million barrels of oil equivalent (MMBoe) in the Williston Basin.
Oasis Petroleum is expected to see earnings growth of 198.8% in 2022. OAS currently pays a quarterly dividend of 58.5 cents ($2.34 annualized). It recently completed a $100-million share repurchase program.
Headquartered in Houston, TX, ConocoPhillips (COP - Free Report) is primarily engaged in the exploration and production of oil and natural gas. COP ended 2021 with proved reserves of 6.1 billion barrels of oil equivalent (Boe).
ConocoPhillips' earnings for 2022 are expected to surge 74% year over year. COP revised higher its expected 2022 return of capital to shareholders. The new guidance is at $8 billion, reflecting an increase from the previously mentioned $7 billion.
Calgary-based Imperial Oil Limited (IMO - Free Report) is one of the largest integrated oil companies in Canada. Its debt-to-capitalization of 19.3% is quite conservative versus 32.7% for the sub-industry to which it belongs. Apart from low leverage for its industry, Imperial Oil has ample liquidity, with cash and cash equivalents of C$1.5 billion.
Imperial Oil is expected to see earnings growth of 95% in 2022. IMO remains strongly committed to return money to investors via dividends. The company's board of directors recently approved a hike in the quarterly dividend payment. The new payout of 34 Canadian cents is 26% above the prior dividend. Further, adhering to the company's long-standing obligation to its shareholders, Imperial Oil revised its existing share purchase policy to buy up to 4% of outstanding common shares.