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Eni Finds Gas Field With Zohr-Like Geology Offshore Cyprus

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Italian oil giant Eni S.p.A. (E - Free Report) recently reported the discovery of a potential natural gas field at the Calypso prospect, located in Block 6 offshore Cyprus. The company has partnered with France's Total S.A. (TOT - Free Report) for the development of the field. With both the companies having 50% stake, Eni is the operator in the field. The government officials of Cyprus believe this is the second significant discovery in the Cypriot exclusive economic zone, since the discovery of around 5 trillion cubic feet in 2011. 

The company drilled a well, Calypso 1 NFW, in 2,074 meters of water depth. The rocks in the well are from the Miocene and Cretaceous age. Per Eni, the geology of the new finding is similar to its Zohr prospect in offshore Egypt, whose reserves were estimated at more than 30 trillion cubic feet by the company. Eni commenced natural gas production in the field in December 2017. The newfound prospect is 80 kilometers away from the Zohr field.

Although the company is yet to announce the gas volume of the Calypso prospect - which requires further analysis to determine options – an Israel-based news website, Globes reported that the new prospect might hold 170-230 billion cubic meters of natural gas.

Notably, the new finding poses a risk of geopolitical rivalry between Turkish Cypriots and Greek Cypriots, where the latter is internationally recognized and has its neighbors' support.

Price Performance

Eni has gained 8.2% in the last year compared with 6.2% growth of its industry.

About Eni

Based in Rome, Italy, Eni is an integrated energy player. The company has operations in 73 countries. The company explores for oil and gas and trades oil, gas, liquefied natural gas (LNG) and electricity. The company was founded in 1953.

We believe that Eni’s constant efforts to expand its upstream operations in Cyprus, Egypt, Vietnam, Indonesia, Pakistan and Kenya will go a long way in generating profitable growth in the future. Moreover, new upstream projects in Ghana and Angola, Indonesia, Mexico will support Eni's oil production growth.

Zacks Rank and Key Picks

Eni carries a Zacks Rank #2 (Buy). Some other top-ranked stocks in the oil and energy sector are Cabot Oil & Gas Corporation and Pioneer Natural Resources Company (PXD - Free Report) . Both the companies sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Houston, TX -based Cabot is an independent energy company. Its sales for the fourth quarter of 2017 are expected to increase 36% year over year. For 2017, the bottom line is expected to be up 342.9%.

Irving, TX- based Pioneer Natural Resources is an independent oil and gas exploration and production company. Its revenues for the first quarter of 2018 are expected to improve 15.6% year over year. For 2018, the bottom line is anticipated to be up 116.2%.

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