Eni S.p.A. (E - Free Report) recently agreed to acquire 70% stake in the Oooguruk oil field in Alaska from Caelus Natural Resources Alaska LLC. With Eni already holding 30% working interest in the oilfield, the Italian energy major’s operating stake in the same, following the closing of the deal, will be 100%.
About Oooguruk Oilfield
The oilfield is located around five kilometres off the coast of North slope in Beaufort Sea. Oooguruk, which came online in 2008, currently produces 10,000 barrels of oil per day (BPD). There are 25 actively producing wells in the oilfield along with 15 wells to inject gas/water. The production facilities are installed on an artificial gravel island, at 1.5 meters of water depth, helping to keep the production trees dry.
The acquisition will enable the company to increase its total oil output from Alaska by 7,000 BPD. Moreover, the deal will boost the company’s presence in the region. It has 100% working interest in the Nikaitchuq oil field, which is located around 13 kilometres North-East of Oooguruk and produces approximately 18,000 BPD of oil. The deal is expected to lead to operational synergies and optimization from the assets in the region.
Notably, the company intends to increase the number of producing wells in the two oilfields as it plans to ramp up production from Alaska to more than 30,000 barrels of oil equivalent per day. Also, Eni acquired 124 exploration leases, which include around 350,000 acres, last August in the Eastern North Slope of Alaska.
Overall, in the United States, Eni has a presence in 21 oil and gas fields, of which, 11 are operated by the company.
Eni has lost 8.2% in the past year compared with 11.8% collective decline of its industry.
Zacks Rank & Stocks to Consider
Eni currently has a Zacks Rank #4 (Sell). If you are interested in the energy sector, you can opt for some better-ranked stocks as given below:
Houston, TX-based Shell Midstream Partners, L.P. (SHLX - Free Report) is a midstream energy company. For 2019, its bottom line, which has witnessed three upside revisions over the past 60 days, is expected to grow 27.7% year over year. The company currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Calgary, Canada-based Gran Tierra Energy Inc. (GTE - Free Report) is an international oil and gas exploration and production company. Its bottom line for 2018 is expected to surge more than 300% year over year. The company delivered average positive earnings surprise of 24% in the trailing four quarters. The stock currently has a Zacks Rank #2 (Buy).
Obsidian Energy Ltd. (OBE - Free Report) is a Calgary, Canada-based exploration and production company. Its bottom line for 2019 is expected to surge more than 80% year over year. The company currently has a Zacks Rank #2.
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