Energy Stocks Holding Narrow Gains; Kosmos Energy Inks Farm-Out Agreement with BP on Moroccan Oilfields

By Staff,

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Top Energy Stocks

XOM -0.35%

CVX +0.24%

COP +0.17%

SLB -0.03%

OXY +0.34%

Energy stocks are slightly higher, with the NYSE Energy Sector Index rising almost 0.1% while shares of energy companies in the S&P 500 are ahead 0.2% as a group. Crude oil for November delivery is down 73 cents at $101.68 per barrel while November natural gas is down 3 cents to $3.79 per 1 million BTU.

In company news, Kosmos Energy Ltd. ( KOS ) is down 0.4% at $10.70 a share, giving back an earlier advance that followed the company's disclosing BP plc ( BP ) will purchase ownership stakes in KOS' exploration blocks in the Agadir Basin offshore of Morocco.

According to a new regulatory filing this morning, KOS late last week secured a 75% working interest over the next 25 years in three exploration fields, with the Moroccan government keeping a 25% stake in the project. Then on Monday, KOS executed three farm-outs with BP, which gains ownership stakes of between 26.4% to 45% in the three exploration blocks in exchange for drilling at least one exploration well in each of the fields.

BP also will repay $36 million in costs KOS already has spent on the project. BP shares are up 0.2% at $42.52 apiece.

In other sector news,

(+) MPC, (+2.1%) Named a Focus Stock at Howard Weil.

(-) BAS, (-4.1%) Shares of the oilfield services company cut to Sector Perform from Outperform at Iberia, which also set a $14 a share price target. The company also said it had 425 rigs in the field during September, unchanged from the prior month.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Copyright (C) 2014 All rights reserved. Unauthorized reproduction is strictly prohibited.

This article appears in: Investing Commodities
Referenced Stocks: BP , KOS

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