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Ecopetrol (EC) Discovers New Gas Reserves in the Orca Block

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Ecopetrol (EC - Free Report) , a Colombian state-owned energy company, discovered two new gas deposits in separate reservoirs while determining the size of the Orca-1 discovery. While evaluating its size, it was found that the Orca-1 discovery was smaller than expected.

The company has not revealed any details regarding the two new reservoirs. However, the commercial viability of these reserves is yet to be determined.

The Orca Norte 1 is the first deepwater well to be operated wholly by Ecopetrol. The appraisal drilling of Orca 1 was carried out by Noble Corporation’s semi-submersible rig Noble Discoverer.

The Orca 1 discovery was made in collaboration with Brazilian energy giant Petrobras in 2014. It is located at a depth of 706 metres under water in the Tayrona Block. This new discovery suggests the possibility of finding additional resources in the Colombian deepwaters. The new discoveries add to a series of successful exploration campaigns in the Gorgon, Uchuva and Glaucus areas, offshore Colombia.

Colombia is currently trying to make a transition from fossil fuels. Due to this, the country’s current administration is not giving away any new oil and gas licenses.

Zacks Rank and Key Picks

Currently, EC carries a Zacks Rank #3 (Hold).

Investors might want to look at some better-ranked stocks in the energy sector, such as Energy Transfer LP (ET - Free Report) , Talen Energy Corporation (TLNE - Free Report) and Archrock Inc. (AROC - Free Report) , each presently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Energy Transfer is a midstream player that owns and operates one of the most diversified portfolios of energy assets in the United States. With a pipeline network extending more than 125,000 miles, its network spans over 44 states. With a presence in all the major U.S. production basins, the company’s outlook seems positive.

Talen Energy is an independent power producer and infrastructure company in the United States. For 2024, it forecasted adjusted free cash flow to be in the range of $150-$300 million. The company has also undertaken a new O&M (operational and maintenance) and G&A (general and administrative) cost savings initiative, under which it has identified specific actions to reduce spending.

Archrock is an energy infrastructure company based in the United States, with a focus on midstream natural gas compression. It provides natural gas contract compression services and generates stable fee-based revenues.

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