Chinese oil giant
) has made a mid-sized natural gas discovery - Bozhong 22-1 - in
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Located in the south central Bohai, Bozhong 22-1 lies in average
water depth of about 25 meters. Drilled and completed at a depth
of 4,611 meters, the discovery well, hit a gas reservoir with a
total thickness of about 9 meters.
The well was tested at gas production of about 142 million cubic
feet per day. The latest find at Bozhong 22-1 validates the
prospects of buried hills for future gas exploration of the south
slope in Bozhong Sag.
Recently, the company discovered a 55-meter gas reservoir at
Lingshui 17-2-1 probe in South China Sea. The discovery marked
the first breakthrough on the independent deepwater exploration
in the South China Sea's 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 currently carries a Zacks Rank #4 (Sell). However, there
are Zacks Ranked #1 (Strong Buy) stocks in the oil and gas sector
Helmerich & Payne, Inc.
Valero Energy Corporation
Patterson-UTI Energy Inc.
) - that appear rewarding for the short term.