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ExxonMobil Makes Second Major Gas Find in Cyprus' Block 10

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Key Takeaways

  • XOM and QatarEnergy discovered a gas-bearing reservoir at the Pegasus-1 well in Cyprus' Block 10.
  • The reservoir lies 1.9 km beneath the seabed and spans approximately 350 meters in thickness.
  • This marks the second major Block 10 find, following the Glaucus-1 and Glaucus-2 well confirmations.

Exxon Mobil Corporation (XOM - Free Report) , in partnership with QatarEnergy, has made a fresh natural gas discovery offshore Cyprus, marking the second major find in the country’s Block 10, per a Reuters report. According to a statement by government spokesperson Konstantinos Letymbiotis, preliminary drilling results from the Pegasus-1 well indicate the presence of a gas-bearing reservoir extending approximately 350 meters at a depth of 1.9 kilometers (beneath the seabed).

The announcement followed a formal briefing to Cypriot president Nikos Christodoulides. Letymbiotis emphasized that additional evaluations will be necessary over the coming months to fully assess the reservoir’s commercial potential.

ExxonMobil-Led Group Deepens Cyprus Gas Potential

The Pegasus-1 discovery builds on the earlier success of the Glaucus-1 well in Block 10, which was announced in February 2019. A follow-up appraisal, Glaucus-2, completed in March 2022, validated the presence of a high-quality natural gas reservoir. These findings position the ExxonMobil-led consortium as a key player in the Eastern Mediterranean’s untapped gas frontier.

Cyprus Eyes Long-Term Energy Potential

Despite multiple gas discoveries around its southern coast, Cyprus is yet to begin commercial extraction or exports. The nation views its offshore reserves as a strategic opportunity to boost energy security and attract foreign investment, especially amid heightened interest in diversified natural gas sources following geopolitical disruptions in global energy markets.

As exploration progresses, the ExxonMobil-QatarEnergy team will continue assessment and appraisal activities to determine the viability of future development and production in Block 10.

XOM’s Zacks Rank & Key Picks

XOM currently carries a Zack Rank #3 (Hold).

Investors interested in the energy sector may look at a few better-ranked stocks like TechnipFMC plc (FTI - Free Report) , W&T Offshore, Inc. (WTI - Free Report) and Oceaneering International, Inc. (OII - Free Report) , each  carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

TechnipFMC continues to build momentum in its subsea business, supported by strong order activity and a growing pipeline of opportunities. A key strength in FTI’s business model is its limited exposure to U.S. land operations, which are more sensitive to volatile commodity pricing.

The Zacks Consensus Estimate for FTI’s 2025 EPS is pegged at $2.08. The company has a Value Score of B.

W&T Offshore benefits from its prolific Gulf of America assets, which offer low decline rates, strong permeability and significant untapped reserves. The company’s acquisition of six shallow-water fields in the GoA added 18.7 million barrels of proved reserves and 60.6 million barrels of proved plus probable reserves. The firm is focused on strategically allocating capital toward organic projects, which should boost its production outlook. WTI has a Value Score of B.

Oceaneering International delivers integrated technology solutions across all stages of the offshore oilfield lifecycle. With a geographically diverse asset portfolio and a balanced revenue mix between domestic and international operations, the company effectively mitigates risk. As a leading provider of offshore equipment and technology solutions to the energy sector, OII benefits from strong relationships with top-tier customers, ensuring revenue visibility and business stability.

The Zacks Consensus Estimate for OII’s 2025 EPS is pegged at $1.79. The company has a Value Score of B. 

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