Back to top

Analyst Blog

Zacks Equity Research

Eni Spuds First Well in Sankofa East

E APC

 ZacksTrade Now

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at support@zacks.com or call 800-767-3771 ext.  9339.

Italian oil major Eni SpA (E - Analyst Report) has successfully drilled the first appraisal well – Sankofa East 2A – of the Sankofa East oil discovery in the Offshore Cape Three Points (OCTP) block.

Spud 8 kilometers southwest of the discovery well Sankofa East XI, the new well substantiates the extension of the oil accumulation in the Cenomanian sequence. Located in the Tano Basin offshore Ghana, about 50 kilometers off the coast of Ghana, the appraisal well – Sankofa East 2A – was spud to a total depth of 4,050 meters in water depth of 990 meters.

The well hit upon 23 meters of  gas and condensate gross pay (17 meters net), and 76 meters of gross oil pay (32 meters net) in good sands of cretaceous age. Eni has projected the total potential of the find at about 450 million barrels of oil in place with recoverable resources of about 150 million barrels.

The outcome of the well’s appraisal is significant as it validates the commerciality of the OTCP block and acknowledges the feasibility for further industrial and economic development in the country. The data acquisition also confirms the hydraulic communication in the oil prone reservoir between the discovery and the appraisal well.

Eni, through its subsidiary Eni Ghana Exploration and Production Limited, operates the OCTP block with a stake of 47.22%. Vitol Upstream Ghana Limited and state company GNPC have an interest of 37.78% and 15%, respectively. Further, GNPC holds an option to increase its holding by about 5%.

Eni’s presence in Sub Saharan Africa dates back to 1960s. Currently, the company operates two exploration offshore blocks – OCTP and Keta – with yield of about 450,000 barrels of oil equivalent per day.

Last month, Eni entered into a Heads of Agreement with US-based Anadarko Petroleum Corporation (APC - Analyst Report) for the development of natural gas reservoirs in offshore Mozambique.

Eni holds a Zacks Rank #4 (short-term Sell rating). Longer term, we maintain our Neutral recommendation.

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

Learn more

Start for as little as $4.50 per trade.

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
DIXIE GRP IN DXYN 15.84 +7.90%
BOFI HLDG IN BOFI 85.30 +4.97%
RAMBUS INC RMBS 12.31 +4.41%
VIPSHOP HOLD VIPS 148.73 +4.35%
NETFLIX INC NFLX 345.74 +4.32%