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ExxonMobil Acquires Interest in PEL 44, Offshore Namibia
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An affiliate of Exxon Mobil Corporation (XOM - Free Report) , ExxonMobil Namibia Limited, has entered into an agreement with Azinam Limited, the Seacrest Capital Group-backed Namibian explorer, for the acquisition of 30% interest in Petroleum Exploration License (PEL) 44, offshore Namibia.
Post the completion of the transaction, Azinam will hold an interest of 12.5%. Maurel and Prom, the license operator, will continue with current equity interest of 42.5%. The other Namibian partners include NAMCOR, Livingstone Mining and Frontier Minerals holding their carried interests of 8%, 4% and 3%, respectively.
Located in the Walvis Basin, PEL 44 is spread across an area of 5,722 square kilometers. It lies in water depths ranging from less than 300 meters to more than 2,500 meters. An area of 2,000 square kilometers 3D seismic survey was purchased by Azinam in 2016. An additional data was acquired for 1,160 square kilometers, upon analysis. The evaluation of this data is underway.
The transaction is value accretive for the growing industry of Namibia. Recently, ONGC purchased a stake in PEL 37, which is operated by Tullow Oil. The operator intends to drill a well in the third quarter of 2018. Moreover, the operator of the PEL 71 license partnership, wherein Azinam has an interest of 20%, has recently hired the ocean rig Poseidon to spud Prospect S in the fourth quarter of 2018.
The Walvis Basin is projected to hold significant petroleum potential, which is further accompanied by an extremely supportive regulatory regime and a young workforce. The completion of the acquisition awaits government approval and other conditions.
Price Performance
ExxonMobil has underperformed the industry in the past year. The company’s shares have declined 1.4%, against the industry's 13.1% rise.
Zacks Rank & Stocks to Consider
ExxonMobil currently carries a Zacks Rank #3 (Hold).
Petrobras, is the largest integrated energy firm in Brazil and one of the largest in Latin America. It pulled off an average positive earnings surprise of 10.4% in the last four quarters.
Helix Energy offers specialty services to the offshore energy industry. The company delivered an average positive earnings surprise of 66.7% in the trailing four quarters.
TC Pipelines purchases, owns and actively participates in the management of U.S.-based natural gas pipelines and related assets. The company delivered an average positive earnings surprise of 3.7% in the last four quarters.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
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ExxonMobil Acquires Interest in PEL 44, Offshore Namibia
An affiliate of Exxon Mobil Corporation (XOM - Free Report) , ExxonMobil Namibia Limited, has entered into an agreement with Azinam Limited, the Seacrest Capital Group-backed Namibian explorer, for the acquisition of 30% interest in Petroleum Exploration License (PEL) 44, offshore Namibia.
Post the completion of the transaction, Azinam will hold an interest of 12.5%. Maurel and Prom, the license operator, will continue with current equity interest of 42.5%. The other Namibian partners include NAMCOR, Livingstone Mining and Frontier Minerals holding their carried interests of 8%, 4% and 3%, respectively.
Located in the Walvis Basin, PEL 44 is spread across an area of 5,722 square kilometers. It lies in water depths ranging from less than 300 meters to more than 2,500 meters. An area of 2,000 square kilometers 3D seismic survey was purchased by Azinam in 2016. An additional data was acquired for 1,160 square kilometers, upon analysis. The evaluation of this data is underway.
The transaction is value accretive for the growing industry of Namibia. Recently, ONGC purchased a stake in PEL 37, which is operated by Tullow Oil. The operator intends to drill a well in the third quarter of 2018. Moreover, the operator of the PEL 71 license partnership, wherein Azinam has an interest of 20%, has recently hired the ocean rig Poseidon to spud Prospect S in the fourth quarter of 2018.
The Walvis Basin is projected to hold significant petroleum potential, which is further accompanied by an extremely supportive regulatory regime and a young workforce. The completion of the acquisition awaits government approval and other conditions.
Price Performance
ExxonMobil has underperformed the industry in the past year. The company’s shares have declined 1.4%, against the industry's 13.1% rise.
Zacks Rank & Stocks to Consider
ExxonMobil currently carries a Zacks Rank #3 (Hold).
A few better-ranked players in the same sector are Petroleo Brasileiro S.A. (PBR - Free Report) , or Petrobras SA, Helix Energy Solutions Group, Inc (HLX - Free Report) and TC Pipelines, LP . All these stocks flaunt a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Petrobras, is the largest integrated energy firm in Brazil and one of the largest in Latin America. It pulled off an average positive earnings surprise of 10.4% in the last four quarters.
Helix Energy offers specialty services to the offshore energy industry. The company delivered an average positive earnings surprise of 66.7% in the trailing four quarters.
TC Pipelines purchases, owns and actively participates in the management of U.S.-based natural gas pipelines and related assets. The company delivered an average positive earnings surprise of 3.7% in the last four quarters.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>