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Eni Discovers Significant Gas Reserves in Indonesia's Kutei Basin

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Key Takeaways

  • Eni discovered significant gas in the Konta-1 well within the Muara Bakau PSC offshore Indonesia.
  • The find holds 600 Bcf of gas in place with potential to exceed 1 Tcf, including upside resources.
  • The discovery's proximity to existing Eni facilities enables development synergies and faster execution.

Eni S.p.A. (E - Free Report) , an Italian integrated energy firm, announced the discovery of significant gas reserves in the Kutei Basin, offshore Indonesia. The discovery was made in the Konta-1 exploration well, which was drilled to a depth of 4,575 meters. The exploratory well was drilled within the Muara Bakau Production Sharing Contract (PSC), operated by Eni. The Kutei Basin is located approximately 50 km off the coast of East Kalimantan.

Eni stated that the Konta-1 well has identified gas in high-quality sandstone reservoirs from the Miocene period. The company has carried out an extensive campaign to collect data to understand the size and properties of the gas discovery. Per Eni, the sandstone reservoirs have shown excellent petrophysical properties, such as high porosity and permeability. The initial estimates suggest that the discovery has 600 billion cubic feet (Bcf) of gas initially in place in the four reservoirs. The potential upside from the discovery, which includes additional resources in the Konta Prospect area, could push the total resources well over 1 trillion cubic feet (Tcf).

The Konta gas discovery is in close proximity to Eni’s existing facilities and previously identified discoveries in the region, which allows for significant development synergies. Eni is also exploring fast-track development options for these gas resources. The proximity to Eni’s existing facilities enables the company to tie back the new resources to existing production facilities and develop them faster and more efficiently.

Furthermore, the successful discovery at the Kutei Basin also strengthens Eni’s confidence to continue with its planned exploration drilling campaign in the basin. The company intends to drill four additional wells in the basin in 2026, as part of its exploratory campaign. Eni holds an 88.334% participating interest in the Muara Bakau PSC, while Saka Energi holds the remaining 11.666%.

E’s Zacks Rank and Key Picks

Eni currently carries a Zacks Rank #3 (Hold).

Some top-ranked stocks from the energy sector are Oceaneering International (OII - Free Report) , Canadian Natural Resources Ltd. (CNQ - Free Report) and FuelCell Energy (FCEL - Free Report) . While Oceaneering currently sports a Zacks Rank #1 (Strong Buy), Canadian Natural Resources and FuelCell carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Oceaneering International delivers integrated technology solutions across all stages of the offshore oilfield lifecycle. The company is a leading provider of offshore equipment and technology solutions to the energy industry. OII’s proven ability to deliver innovative, integrated solutions supports ongoing client retention and new business opportunities, ensuring steady revenue growth.

Canadian Natural Resources is one of the largest independent energy companies in Canada engaged in the exploration, development and production of oil and natural gas. The company boasts a diversified portfolio of crude oil, natural gas, bitumen and synthetic crude oil. It has delivered 25 consecutive years of dividend increases, one of the longest streaks among global oil producers.

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