Eni SpA (E - Free Report) has made an oil discovery in the PL532 license, southwest of the Johan Castberg field.
Drilled in 336 meters of WD in the Kayak prospect of the Barents Sea PL532 license, the new discovery has been made through the well 7219/9-2. Partners of PL532 license include Statoil ASA (STO), Eni and Petoro, holding 50%, 30% and 20%, respectively.
Located about 23 kilometers southwest of Johan Castberg, the well lies 226 kilometers North West of Hammerfest.
The company’s intent to explore the Kayak prospect was to examine the hydrocarbon potential of the Cretaceous Sequence. The well hit oil in two sandstone intervals of 27 meters and 18 meter thickness in a Cretaceous sequence.
Per the initial estimates, the discovery is estimated to hold between 100 and 180 million barrels of oil in place (25–50 million barrels of oil recoverable), which has potential to be assessed, further. Extensive data capture and fluid sampling has been performed in the well.
The discovery is in sync with Eni’s exploration strategy that, in case of success, permits the development of the reserves. It has synergies with future producing infrastructures and reduces time to market considerably.
Eni’s presence in Norway dates back to 1965. Currently, the company produces about 180,000 barrels of oil equivalent per day through its subsidiary Eni Norge AS.
Eni’s constant efforts to expand its upstream operations in Cyprus, Egypt, Vietnam, Indonesia, Pakistan and Kenya are anticipated to boost profitable growth in the future. Moreover, project start-ups, inputs from big projects in Algeria, Iraq, Australia, Russia as well as Egypt, along with its strategic position in non-conventional gas, are expected to augment volumes going forward.
Shares of the company have lost 7.7% in the last three months compared with the Zacks categorized Oil & Gas – International Integrated industry's decline of 4.3%.
Eni currently has a Zacks Rank #5 (Strong Sell). Some better-ranked stocks in the same space are Delek US Holdings, Inc. (DK - Free Report) , Pembina Pipeline Corp (PBA - Free Report) and Canadian Natural Resources Limited Ltd. (CNQ - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Delek US Holdings delivered a positive earnings surprise of 148.48% in the preceding quarter. The company beat estimates in each of the trailing four quarters, with an average positive earnings surprise of 60.68%.
Pembina Pipeline delivered a positive earnings surprise of 42.31% in the preceding quarter. The company beat estimates in one of three trailing quarters, with an average positive earnings surprise of 0.23%.
Canadian Natural Resources delivered a positive earnings surprise of 30.77% in the preceding quarter. It surpassed estimates in two of the trailing four quarters, with an average negative earnings surprise of 275.46%.
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