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Eni's (E) Exploratory Efforts in Block CI-205 Yield Results

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Eni S.p.A (E - Free Report) , the Italian energy giant, has made a significant hydrocarbon discovery in Block CI-205, off the coast of Côte d’Ivoire. In a meeting held in Abidjan, the President of the country, Alassane Ouattara, and Eni’s CEO, Claudio Descalzi, discussed the company’s activities in the country along with the success of the exploratory well Murene 1X on the discovery, named Calao. The meeting was also attended by Côte d’Ivoire’s prime minister, Robert Beugré Mambé, and the minister of Mines, Petroleum and Energy, Mamadou Sangafowa-Coulibaly.

The Calao discovery was described as a significant hydrocarbon find in the West African nation. This is the second largest discovery in Côte d’Ivoire, after the Baleine discovery, which was also made by Eni in 2021.

The drilling operations took place around 45 kilometers off the coast of the West African nation in Block CI-205. The drilling operations were carried out by the Deep Value Driller drillship, managed by Saipem Holdings. The drillship has secured work for 11 firm wells with six-well options owing to its drilling assignment with the Italian oil and gas major.

The Murene 1X well was drilled up to a depth of 5,000 meters in water depths of around 2,200 meters. The exploratory well discovered light oil, gas, and condensates at various intervals of the Cenomanian age. The hydrocarbon discovery exhibited good to excellent permeability values. The preliminary assessments show that resources might be in the range of 1-1.5 billion barrels of oil equivalent (boe).

Eni operates Block CI-205 in partnership with Petroci Holding. It has been operating in Côte d’Ivoire since 2015 and holds participating interests in the CI-101, CI-401, CI-501, CI-801 and CI-802 blocks in the deep waters of Côte d’Ivoire. These blocks are also operated in partnership with Petroci Holding.

Eni’s current equity production of hydrocarbons from the Baleine field came in at 22,000 boe per day. The field was discovered in September 2021. The final investment decision for the development of the field was taken less than a year and a half after its discovery, and production at the field began in August 2023.

The Italian energy company is also working on the Baleine Phase 2 project, which is scheduled to begin by the end of 2024. The project is aimed at boosting field production to 50,000 bbl/d of oil and about 70 mscf/d of associated gas. The third development project of the Baleine field is aimed at raising production to 150,000 bbl/d of oil and 200 mscf/d of gas.

Zacks Rank and Key Picks

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

Some better-ranked stocks in the energy sector are Sunoco LP (SUN - Free Report) , Archrock Inc. (AROC - Free Report) and Harbour Energy (HBRIY - Free Report) . Both Sunoco and Archrock presently sport a Zacks Rank #1 (Strong Buy), while Harbour Energy carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Sunoco LP is one of the largest distributors of motor fuel in the United States. The company distributes fuel to independent dealers, commercial customers, convenience stores as well as distributors. Sunoco’s current dividend yield is greater than the composite stocks belonging to the industry. SUN could be a preferred stock for income-focused investors who seek consistent returns.

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.

Harbour Energy is a leading independent oil and gas company, primarily involved in upstream operations. The recently announced acquisition of the Wintershall Dea asset portfolio is expected to increase HBRIY's estimated production. The company has also done well in reducing its debt in the past year.

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