Back to top

Analyst Blog

Oil giant ExxonMobil Corporation’s (XOM - Analyst Report) Liberian affiliate has finally completed the acquisition of an 80% interest in Liberia Block 13 (LB-13) from Canadian Overseas Petroleum (Bermuda) Ltd. (COPL). Liberia Block 13 is 18 miles (30 kilometers) offshore Liberia’s central coast.

Located offshore Liberia in water depths between 250 feet and 10,000 feet, LB-13 spans over 625,000 acres (2,500 square kilometers). After receiving final approvals from the Liberia national legislature and Liberia President, the transaction closed on Apr 5, 2013.

ExxonMobil will be the operator of LB-13, while COPL will hold a 20% interest in the block. With an intention to begin complying with the requirements of the production sharing contract, ExxonMobil intends to open its venture office in Liberia’s capital Monrovia within a period of 180 days. The contract requires the company to drill an exploration well within three years.

The contract is a key milestone achieved by the company in its efforts to develop the hydrocarbon resources of the region. ExxonMobil’s capability to develop resources will help the government of Liberia to work for the benefit of the region. Liberia’s emerging oil industry offers numerous prospects and the company’s entry at this point positions it advantageously.

Recently, ExxonMobil announced its plan to develop a huge floating liquefied natural gas project (FLNG) to process gas from its Scarborough field, off the coast of Western Australia. The project was in response to the rising cost of setting up LNG plants onshore Australia.

ExxonMobil holds a Zacks #3, which is equivalent to a short-term Hold rating. However, the Zacks Ranked #1 Stone Energy Corp (SGY - Analyst Report), Range Resources Corporation (RRC - Analyst Report) and NGL Energy Partners LP (NGL - Snapshot Report) are expected to outperform the market over the next few months.

Please login to or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research


Are you a new Zacks Member or a visitor to

Top Zacks Features

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 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
SUPER MICRO… SMCI 27.00 +10.25%
CANADIAN SO… CSIQ 38.34 +8.18%
BANCO DO BR… BDORY 16.78 +8.05%
CENTURY ALU… CENX 26.97 +7.97%
WILLDAN GRO… WLDN 11.38 +5.86%