Italy's biggest energy company by market value, Eni SpA (E - Free Report) , has yet again hit upon a massive oil and gas deposit, offshore Congo.
The latest discovery is located at the Nene’ Marine exploration prospect in the Marine XII Block about 17 kilometers from the shoreline. The find is estimated to hold 717 million barrels of oil equivalent.
Based on the results of the two wells which have been proved so far, the prospect is projected to hold about 600 million barrels of oil and 700 billion cubic feet of gas. The structure is believed to have additional upside that will be assessed with further delineation wells.
The probe was made through the well Nene’ Marine 1, which was spud in 24 meters of water to reach a depth of 3,013 meters. A considerable wet gas and light oil accumulation was uncovered in the pre-saline clastic sequence of Lower Cretaceous age.
The drilling of another well – Nene’ Marine 2 – 2 kilometers from the latest discovery, validated the considerable hydrocarbon accumulation and the continuity of the reservoir. Both the wells flowed oil at a commercial rates of 37° API gravity, during production tests.
The Italian company will carry on the appraisal of the discovery while commencing studies for commercial development of the hydrocarbon accumulation in well Nene’ Marine 1 along with its partners.
Eni, the operator of Marine XII block, holds a stake of 65%. Other partners include New Age and state company SNPC (Societé Nationale des Pétroles du Congo) with a share of 25% and 10%, respectively. Currently, Eni has an equity production of 110,000 barrels of oil per day in the Republic of Congo.
Eni carries a Zacks Rank #5 (Strong Sell). However, not all sector stocks are performing as poorly as Eni. Range Resources Corporation (RRC - Free Report) , Gulfmark Offshore, Inc. (GLF - Free Report) and Dril-Quip, Inc. (DRQ - Free Report) with a Zacks Rank #1 (Strong Buy) are good investment choices.