Oil major BP plc (BP - Free Report) along with partner Kosmos Energy intends to produce gas off Mauritania coast. The company has announced that a test drill confirmed the presence of a vital field in the same area.
The field is estimated to produce about 60 million cubic feet of gas per day. Kosmos was given the permission to trade on the London Stock Exchange’s main market early this week. The company stated that the well is capable of producing about 200 million cubic feet per day once fully operational.
In 2015, Kosmos had discovered a gas pool in the Tortue 1 exploration well, which is part of the Greater Tortue Complex spread across Senegal and Mauritania that contained more than 15 trillion cubic feet of gas.
In 2016, BP purchased working interest in Kosmos' exploration blocks in Mauritania and Senegal, including the Tortue field.
The recent drilling successes and comparatively low costs have attracted several oil majors including BP and Total SA (TOT - Free Report) to invest in the waters of Senegal and Mauritania.
BP owns 62% interest in Tortue. The other partners include Kosmos and Mauritania's state-run oil company, Societe Mauritanienne des Hydrocarbures et de Patrimoine Minier, holding 28% and 10%, respectively.
BP has a strong portfolio of upstream projects that are expected to fetch significant cash flows. The company anticipates the projects to add 800 Mboe/d to net production capacity by 2020, once they are online. It is to be noted that 90% of these upstream developments are either under construction or are completed.
Over the last three months, shares of BP have lost 5.9% compared with the industry’s decline of 2.8%.
BP currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the same space include Range Resources Corp. (RRC - Free Report) and TransCanada Corp. (TRP - Free Report) . All of these stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Range Resources delivered a positive earnings surprise of 250.00% in the preceding quarter. The company beat estimates in three of the trailing four quarters with an average negative earnings surprise of 94.22%.
TransCanada delivered a positive earnings surprise of 12.00% in the preceding quarter. It surpassed estimates in two of the trailing four quarters with an average positive earnings surprise of 4.06%.
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