Chinese oil giant
) discovered a 55-meter gas reservoir at Lingshui 17-2-1 probe in
South China Sea. The discovery marks the first breakthrough on
the independent deepwater exploration in the South China Sea's
Lingshui 17-2 is located in the east Lingshui Sag in deepwater
area of Qiongdongnan basin. The well was drilled in an average
water depth of about 1,450 meters to touch a depth of 3,510
The new mid-sized gas discovery Lingshui 17-2 has not only
establishes the exploration potential of structural and
lithologic trap in the central Canyon channel of Lingshui Sag but
also validates the superior exploration prospects in the
deepwater area of Qiongdongnan basin.
CNOOC is one of the three leading oil companies in China and one
of the largest independent oil and gas exploration and production
companies of the world. It is China's dominant producer of
offshore crude oil and natural gas and engages in the
exploration, development, production, and sale of crude oil,
natural gas, and other petroleum products. CNOOC Ltd. is the only
company permitted to conduct exploration and production
activities with international oil and gas companies off the
shores of China.
We remain positive on CNOOC's performance, which reflects its
premium assets portfolio, excellent execution strategy, unique
position as a pure oil player and potential transactions in the
merger and acquisition space.
CNOOC's growth profile should get a boost over the next 3 to 5
years from numerous development projects offshore China,
international growth from recent acquisitions, and intensive
exploration and development programs with its partners.
CNOOC carries a Zacks Rank #4 (Sell). Other stocks in the oil and
gas industry worth considering include
Helmerich & Payne, Inc.
Warren Resources Inc.
Patterson-UTI Energy Inc.
). All three stocks have a Zacks Rank #1 (Strong Buy).
CNOOC LTD ADR (CEO): Free Stock Analysis
HELMERICH&PAYNE (HP): Free Stock Analysis
PATTERSON-UTI (PTEN): Free Stock Analysis
WARREN RSRCS (WRES): Free Stock Analysis
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