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Eni (E) Generates First Oil from Cabaca South East Field

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Integrated energy major Eni SpA (E - Free Report) recently announced the production of first oil from Cabaça South East field located in block 15/06, off the coast of Angola. The oil field is the part of East Hub Development Project.

The company has commenced oil production from the development five months before schedule. Notably, Eni is likely to continue producing oil from the region using the Armada Olombendo FPSO vessel, which is estimated to have a capacity to produce 80,000 barrels per day of crude and compress 3.4 million cubic meters per day of natural gas.

he East Hub project comprises five producers, nine subsea wells and four water injectors that are situated in a depth of water of 1,476–1,804 feet.

From the block 15/06, the company projects peak output of 150,000 barrel per day for 2017. Eni has 36.8% interest in the block, while Sonangol Pesquisa e Produção and SSI Fifteen Ltd. hold 36.8% and 26.4%, respectively.

Rome, Italy-based Eni with its consolidated subsidiaries is engaged in oil and gas, electricity generation, petrochemicals, oilfield services and engineering industries.

We note that the company lagged the Zacks Consensus Estimate in three of the last four quarters with an average negative surprise of 202.66%. Additionally, the company projects year-over-year earnings decline of 128.7% for 2016.

Over the last one year, Eni shares have underperformed the Zacks categorized Oil & Gas-International Integrated industry. During the aforesaid period, shares of the company improved 16.1% compared with 22.3% improvement for the broader industry.

 

As a result, Eni carries a Zacks Rank #4 (Sell). Some better-ranked players in the energy sector include Imperial Oil Limited (IMO - Free Report) , Northern Oil and Gas Inc. (NOG - Free Report) and Denbury Resources Inc. . Both Imperial Oil and Denbury Resources sport a Zacks Rank #1 (Strong Buy), while Northern Oil and Gas carries a Zacks Rank #2 (Buy).You can see the complete list of today’s Zacks #1 Rank stocks here.  

In 2017, Imperial Oil’s earnings are anticipated to grow 386.6%.

Northern Oil and Gas posted an average earnings surprise of 81.35% in the last four quarters. 

Denbury surpassed the Zacks Consensus Estimate in each of the last four quarters with an average earnings surprise of 283.33%.

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