Valaris plc (VAL - Free Report) recently entered into an agreement with Neptune Energy. Per the accord, Valaris will be providing offshore contract drilling services for the development of the Seagull oil project in Central North Sea, UK. The companies are yet to disclose the financial terms.
Precisely, Valaris’ heavy-duty jack-up, Rowan Gorilla VI, will be employed by Neptune Energy to drill four firm wells. Neptune Energy added that the drilling campaign is for 18 months and will commence from the third quarter of 2020.
The Seagull development, which is expected to have a life span of 10 years, is likely to initially produce daily oil equivalent volumes of 50,000 barrels. The exploration and production company expects that oil will account for 80% of total initial production. The company has estimated that the field will have proved and probable gross reserves of 50 million barrel of oil equivalent.
Notably, in the Seagull oil project, the operator Neptune Energy has roughly a 35% ownership stake. The remaining 50% and 15% interests are owned by British energy giant BP plc (BP - Free Report) and Japan Petroleum Exploration Co., Ltd, respectively.
Based in London, the UK, Valaris currently carries a Zacks Rank #3 (Hold). Meanwhile, two better-ranked stocks in the energy space are Dril-Quip, Inc. (DRQ - Free Report) and Delek Logistics Partners LP (DKL - Free Report) . While Dril-Quip carries a Zacks Rank #2 (Buy), Delek Logistics sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Dril-Quip beat the Zacks Consensus Estimate in three of the trailing four quarters, the average earnings surprise being 49%.
Delek Logistics is likely to see earnings growth of 4.9% in 2019.
Free: Zacks’ Single Best Stock Set to Double
Today you are invited to download our just-released Special Report that reveals 5 stocks with the most potential to gain +100% or more in 2020. From those 5, Zacks Director of Research, Sheraz Mian hand-picks one to have the most explosive upside of all.
This pioneering tech ticker had soared to all-time highs and then subsided to a price that is irresistible. Now a pending acquisition could super-charge the company’s drive past competitors in the development of true Artificial Intelligence. The earlier you get in to this stock, the greater your potential gain.
Download Free Report Now >>