Oil major ExxonMobil Corporation (XOM - Free Report) recently declared that its Liza oil discovery, in Stabroek block offshore Guyana, is now commercial.
Last week, the company sent a letter to the country’s Minister of Natural Resources comprising the official notice of its discovery of commercial quantities of oil in the area.
According to the Minister, the notice sent by ExxonMobil was essential under Section 31 of the Petroleum Act. The Minister said that it is the first time in Guyana’s 50-year history as an independent nation that the section of the Act has been implemented.
Per the Minister, this marks a major milestone in the development of the country and includes the huge responsibility that comes with the notice. The year 2016 lays the basis for future developments, while 2017 would mark implementation of assigned plans and programs. The minister eagerly awaits the development plan for the offshore discovery.
ExxonMobil’s partner in the project – Hess Corporation (HES - Free Report) – mentioned in its financial report that the estimated recoverable resources for the Liza prospect are expected at the upper end of the earlier announced range of 800 million to 1.4 billion barrels of oil equivalent.
ExxonMobil drilled the Liza-1 well in Mar 2015, while the Liza-2 well was drilled earlier this year by ExxonMobil affiliate – Esso Exploration and Production Guyana. The second well lies about 2 miles (3.3 kilometers) away from the first Liza well.
ExxonMobil is the world’s best run integrated oil company based on its track record of high return on capital employed. ExxonMobil’s strength lies in its balanced operations, strong financial flexibility and continuous efficiency and cost control. The company’s efforts to build an unconventional resource portfolio both in North America and overseas reflect its aim to increase production through higher exposure to large energy resources with long reserve life and low field declines.
ExxonMobil currently has a Zacks Rank #3 (Hold). Some better-ranked players from the same sector are SunCoke Energy Inc. (SXC - Free Report) and Futurefuel Corp. . Both these stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
SunCoke Energy posted a positive earnings surprise of 177.78% in the preceding quarter. It reported a positive earnings surprise in three of the four preceding quarters.
Futurefuel Corp. posted a positive earnings surprise of 20.83% in the preceding quarter. It reported a positive earnings surprise in all of the four preceding quarters.
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