Italian energy major
) has added another 4 trillion cubic feet (Tcf) of gas in place
within the Mamba Complex, in Area 4, offshore Mozambique.
The Coral 3 delineation well represents the eighth well drilled
back-to-back in Area 4 and substantiates the potential of
Eni-operated Area 4 at 75 Tcf of gas in place, of which 27 Tcf is
located completely in Area 4.
Located about 5 kilometers south of Coral 1, 15 kilometers from
Coral 2 and about 65 kilometers off the Cabo Delgado coast -
Coral 3 was drilled in 2,035 meters of water and touches a total
depth of 5,270 meters, where it came across117 meters of gas pay
in a high quality Eocene reservoir.
In addition to verifying the huge prospects of the Coral
discovery (estimated to hold more than 13 Tcf of gas in place),
the discovery also proved the existence of hydraulic
communication in the same reservoirs of Coral 1 and Coral
The Italian outfit has proposed to drill another delineation well
- Mamba South 3 - to evaluate the full potential of the Mamba
Complex discoveries, prior to moving back to exploration drilling
in the southern sector of Area 4.
Eni, the operator of Area 4, holds a 70% participating interest,
while the other partners -Galp Energia of Portugal, Kogas of
South Korea and Mozambique state oil company ENH - hold 10% each.
The latest discovery strengthens Eni's position in the area and
the company intends to make steady progress with the development
plans for this huge gas reserve base. The final investment
decision for development of its gas reserves is expected by 2014.
Recently, Eni entered into a Heads of Agreement with US-based
Anadarko Petroleum Corporation
) for the development of natural gas reservoirs offshore
Mozambique. But given the size of the discoveries in the area,
both the companies are ready to farm out their interests to
Eni holds a Zacks Rank #4, which is equivalent to a short-term
Sell rating. However, there are other stocks in the oil and gas
NGL Energy Partners LP
Laclede Group Inc
) - which hold a Zacks Rank #1 (Strong Buy) and are expected to
ANADARKO PETROL (APC): Free Stock Analysis
ENI SPA-ADR (E): Free Stock Analysis Report
LACLEDE GRP INC (LG): Free Stock Analysis
NGL ENERGY PART (NGL): Free Stock Analysis
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