Back to top

Analyst Blog

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.

U.S. oil major ConocoPhillips (COP - Analyst Report) has made a significant oil find in the deepwater Gulf of Mexico (GoM).

The WR98-1 Coronado wildcat exploration well – in Walker Ridge Block 98 – was drilled to a total depth of 31,866 feet, in 6,127 feet of water. The probe is located about 190 miles off the coast of Louisiana and about 12 miles southeast of the Shenandoah discovery. The Coronado well is still undergoing appraisal and further evaluation will be required to verify its full potential.

Chevron Corporation (CVX - Analyst Report) is the operator of WR98-1 with a stake of 40%. Other partners include ConocoPhillips, Anadarko Petroleum Corporation (APC - Analyst Report) and Venari Offshore LLC holding 35%, 15% and 10%, respectively.

The news came close on the heels of ConocoPhillips’ recent major oil discovery at its Shenandoah appraisal well 2 in the deepwater GoM. The well in the Shenandoah Basin – WR51-2 - encountered more than 1,000 feet of net oil pay in high-quality Lower Tertiary-aged reservoirs. The well – located at Shenandoah oil field in Walker Ridge Block 52 in the GoM – was drilled to 31,405 feet in about 5,800 feet of water.

ConocoPhillips’ exploration success in the prolific Lower Tertiary Trend is further substantiated with the Coronado discovery. The company holds the largest lease in the area with about 2 million net acres. Its remarkable results from the Coronado and Shenandoah discoveries prove the value of its portfolio in the GoM and highlight its future plans to grow organically.

In 2013, the company intends to drill 5–8 wells, including the Ardennes prospect and the Thorn well. Ardennes was spud in early March, while the Thorn is scheduled for drilling in the second quarter of this year. The Thorn well marks the company’s re-entry into the Gulf as an operator. ConocoPhillips remains on track with major growth projects expected to offset production declines and diversify its portfolio.

ConocoPhillips holds a Zacks Rank #3 (short-term Hold rating). Another energy stock Stone Energy Corporation (SGY - Analyst Report) holds a Zacks Rank #1 (Strong Buy) and is expected to perform better in the short term.
 

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%