Italian energy major
) has made a new oil discovery with an exploration well - Rosa
North IX. The well is located in the Meleiha Concession in
Egypt's Western Desert.
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The Rosa North IX probe came across 80 meters in multiple
good-quality sandstones of the Bahariya, Alam El Bueib, Khatatba
and Ras Qattara reservoirs. It flowed 43°- 48° API oil at
superior rates during reservoir testing.
The progress plan of the find includes spudding of two
development wells in 2013, and the yield from each well is
anticipated at 2,000 barrels of oil per day (Bopd). The
production from the field is likely to touch 5,000 Bopd within a
year from its coming online. The output will be supplied to the
nearby processing facilities of Meleiha field.
The new discovery comes close on the heels of the Emry Deep field
find in May 2012. Only 7 months after its commencement, Emry Deep
now generates 18,000 barrels of oil equivalent per day.
These finds validate the prospects of the Meleiha Concession and
the untapped potential disclosed by the freshly obtained 3D
seismic survey and new geological models resulting from it.
Eni has a 56% working interest in the Meleiha Concession through
its affiliate International Egyptian Oil Company (IEOC). Other
partners are Lukoil and Mitsui holding 24% and 20% interests,
respectively. Agiba, the operator of the Rosa North project, is a
joint operating company owned by IEOC, Mitsui and Egyptian
General Petroleum Corporation (EGPC), holding 40%, 10% and 50%,
The drilling expedition in the Rosa North IX is in sync with
Eni's plan to realign exploration activities in Egypt by aiming
for deeper oil plays in the Western Desert. The company is also
concentrating on the fast track development of conventional and
synergic oil assets.
Eni holds a Zacks Rank #4, which is equivalent to a Sell rating.
However, other stocks in the oil and gas sector like
Breitburn Energy Partners LP
Penn Virginia Corporation
Memorial Production Partners LP
) hold a Zacks Rank #1 (Strong Buy) and are expected to perform