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BP Acquires Stake in Exploration Blocks from Kosmos Energy
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BP plc (BP - Free Report) recently inked agreements with Kosmos Energy Ltd. (KOS - Free Report) to purchase 62% working interest in the exploration blocks of the latter in Mauritania and a 32.49% effective working interest in Kosmos’ Senegal exploration blocks.
Both these acreage hold world-class deepwater gas discoveries and exploration prospectivity across both countries.
The agreement includes acreage spanning across 33,000 square kilometers and comprises the Tortue field. Per Kosmos, the field is estimated to hold over 15 trillion cubic feet (tcf) of discovered gas resources, while the total acreage is estimated to hold about 50 tcf of gas resource potential and over 1 billion barrels of liquids resource potential.
An investment of nearly $1 billion is expected from BP in the form of a multi-year exploration and development carry to obtain a 62% interest and operatorship of offshore Blocks C-6, C-8, C-12 and C-13 in Mauritania and an effective 32.49% interest in the Saint-Louis Profond and Cayar Profond blocks in Senegal.
The partners intend to process and transfer the gas from Tortue to a nearshore LNG facility to lower development time and enhance capital efficiency. The proposed complex could be expanded in phases to accommodate future gas discoveries.
Per the terms of the agreements, BP and Kosmos have also decided that the latter will remain the technical operator for the exploration phase of the project and drill three new exploration wells, starting in 2017.
In addition to the existing blocks, the companies have agreed to cooperate in areas of mutual interest in offshore Mauritania, Senegal and The Gambia with Kosmos acting as the exploration operator and BP as the development operator.
The agreements are anticipated to close by the first quarter of 2017, subject to government approvals. We expect these developments to result in stock price appreciation. Year to date, the stock has gained 17%, while Zacks sub industry Oil & Gas-International Integrated Market has increased by 18.6%. BP currently has a Zacks Rank #3 (Hold). Some better-ranked players in the same sector include SunCoke Energy Inc. (SXC - Free Report) and Futurefuel Corp. (FF - Free Report) . 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 last reported 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 last reported quarter. It reported a positive earnings surprise in all of the last four quarters.
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BP Acquires Stake in Exploration Blocks from Kosmos Energy
BP plc (BP - Free Report) recently inked agreements with Kosmos Energy Ltd. (KOS - Free Report) to purchase 62% working interest in the exploration blocks of the latter in Mauritania and a 32.49% effective working interest in Kosmos’ Senegal exploration blocks.
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Both these acreage hold world-class deepwater gas discoveries and exploration prospectivity across both countries.
The agreement includes acreage spanning across 33,000 square kilometers and comprises the Tortue field. Per Kosmos, the field is estimated to hold over 15 trillion cubic feet (tcf) of discovered gas resources, while the total acreage is estimated to hold about 50 tcf of gas resource potential and over 1 billion barrels of liquids resource potential.
An investment of nearly $1 billion is expected from BP in the form of a multi-year exploration and development carry to obtain a 62% interest and operatorship of offshore Blocks C-6, C-8, C-12 and C-13 in Mauritania and an effective 32.49% interest in the Saint-Louis Profond and Cayar Profond blocks in Senegal.
The partners intend to process and transfer the gas from Tortue to a nearshore LNG facility to lower development time and enhance capital efficiency. The proposed complex could be expanded in phases to accommodate future gas discoveries.
Per the terms of the agreements, BP and Kosmos have also decided that the latter will remain the technical operator for the exploration phase of the project and drill three new exploration wells, starting in 2017.
In addition to the existing blocks, the companies have agreed to cooperate in areas of mutual interest in offshore Mauritania, Senegal and The Gambia with Kosmos acting as the exploration operator and BP as the development operator.
The agreements are anticipated to close by the first quarter of 2017, subject to government approvals. We expect these developments to result in stock price appreciation. Year to date, the stock has gained 17%, while Zacks sub industry Oil & Gas-International Integrated Market has increased by 18.6%.
BP currently has a Zacks Rank #3 (Hold). Some better-ranked players in the same sector include SunCoke Energy Inc. (SXC - Free Report) and Futurefuel Corp. (FF - Free Report) . 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 last reported 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 last reported quarter. It reported a positive earnings surprise in all of the last four quarters.
Zacks’ Best Private Investment Ideas
In addition to the recommendations that are available to the public on our website, how would you like to follow all Zacks' private buys and sells in real time?
Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Starting today, for the next month, you can have unrestricted access. Click here for Zacks' private trades >>