Italian oil and gas group
Eni SpA
(
E
) has augmented its resource base in Area 4, offshore Mozambique,
at the Mamba North East 1 exploration prospect with a giant new
natural gas find. The discovery widens the company's Mamba base by
at least 10 trillion cubic feet (Tcf).
Located 50 kilometers off the Capo Delgado coast in a water
depth of 1,848 meters, Mamba North East 1 was drilled to a total
depth of 4,560 meters. The drilling site lies about 15 kilometers
northeast of the initial Mamba South 1 discovery and 12 kilometers
southwest of the Mamba North 1 giant discovery.
The discovery well struck a total of 240 meters of gas pay in
multiple high-quality Oligocene and Eocene sands. According to Eni,
the find confirmed reservoir continuity and pressure communication
with the earlier Mamba South 1 and Mamba North 1
wells.
The outcome of the exploration well, drilled in the eastern part
of Area 4, holds special significance as it increases the output of
the area by at least 10 Tcf of which around 80% is entirely
enclosed there. The latest find is expected to boost the prospects
of the Mamba complex in Area 4 at around 40 Tcf of gas in
place.
Eni retains the operatorship of Area 4 with a participating
interest of 70%. The other participants are Galp Energia, KOGAS and
state owned ENH, each holding a 10% interest.
We belief Eni's constant efforts to expand its upstream
operations and such endeavors in Iraq, Angola and Russia will go a
long way to generate profitable growth in future. Moreover, project
start-ups, inputs from big projects including Junin 5 and Perla in
Venezuela, potential exploration scenario in Togo, Ghana,
Democratic Republic of Congo and Mozambique, as well as the
strategic position in non-conventional gas are expected to augment
volumes going forward.
Eni added that it intends to drill four more wells in the
vicinity of the latest find in 2012 to determine the complete scale
and potential of the Mamba complex. The Rome-based energy explorer
is reported to be in the lookout for farm-in partners for further
development of Area 4 to help it bear the significant associated
investments.
BP Plc
(
BP
),
Royal Dutch Shell plc
(
RDS.A
) and
Total S.A.
(
TOT
) are said to be among the firms that are interested to take part
in the venture.
Eni holds a Zacks #3 Rank, which translates into a Hold rating
for a period of one to three months. For the long term, we remain
Neutral on the company.
BP PLC (
BP
): Free Stock Analysis Report
ENI SPA-ADR (
E
): Free Stock Analysis Report
ROYAL DTCH SH-A (RDS.A): Free Stock Analysis
Report
TOTAL FINA SA (
TOT
): Free Stock Analysis Report
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