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Chevron Discovers Oil at Anchor Prospect in Gulf of Mexico

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California-based integrated energy company Chevron Corporation (CVX - Free Report) has recently discovered oil at an appraisal well at the deepwater Anchor prospect in the Gulf of Mexico. The Anchor #4 appraisal well drilled to total depth, encountered 800 feet of net oil play in multiple reservoirs.

Chevron holds 55% working interest in the Anchor prospect and is its operator while Cobalt International Energy Inc. owns 20% stake. Samson Offshore Anchor LLC and Venari Resources LLC hold 12.5% interest each.

Cobalt owns 100% interest in two leases on the southern flank of Anchor. Based on reservoir simulation results, additional wells on these two leases are required to maximize recovery from the field. Cobalt is contemplating options to bring the two leases in the Anchor unit for the optimum development of the field.

Zacks Rank and Key Picks

Chevron is one of the largest publicly traded oil and gas companies in the world, based on proved reserves. It is engaged in oil and gas exploration and production, refining and marketing of petroleum products, manufacturing of chemicals, and other energy-related businesses.

The company has outperformed the Zacks categorized Oil & Gas-International Integrated industry over the prior six months. During the aforesaid period, shares of Chevron rallied almost 11% while the broader industry gained around 5%.

However, Chevron reported negative average earnings surprise of 16.46% in the trailing four quarters.

Therefore, the company currently carries Zacks Rank #3 (Hold).

Better-ranked players in the same industry include Repsol S.A. (REPYY - Free Report) and ENI S.p.A. (E - Free Report) . Both these companies carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Repsol posted positive average positive earnings of 46.34% in the preceding four quarters.

ENI is expected to deliver year-over-year growth of 748% in its earnings in 2017.

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