) has yet again made a high-impact gas discovery at Agulha
exploration prospect, in Area 4, offshore Mozambique. This
represents the tenth continuous well to be drilled in the block,
where Eni, the operator, maintains its 100% exploration success
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Initial estimates reveal that the Agulha structure might hold
about 5-7 trillion cubic feet of gas in place. Eni along with its
other joint venture partners of Area 4 is evaluating the results
of the find to decide on its appraisal strategy.
Located in the southern part of area 4, about 80 kilometers off
the Cabo Delgado coast, the exploration well, Agulha, was drilled
to a total depth of 6,203 meters in water depth of 2,492 meters.
The well struck around 160 meters of wet gas pay in good quality
Paleocene and Cretaceous reservoirs.
The primary aim of drilling the Agulha well was to evaluate new
exploration targets and examine the hydrocarbon potential of
geological sequences, which are older than the ones drilled in
the Mamba complex.
The discovery of Agulha well in the southern part of Area 4 has
unlocked a new exploration play, where the drilling of three more
wells is anticipated in 2014.
Eni, holds a 50% indirect interest, after farming out a 20% stake
to China National Petroleum Corporation. The other partners
include Galp Energia, Kogas and Mozambique's state-owned Empresa
Nacional de Hidrocarbonetos each holding 10%.
Earlier, Eni had decided to jointly develop Area 4 with
Anadarko Petroleum Corp.
) neighboring Area 1 field in a liquefied natural gas project.
The final investment decision is expected in 2014, with first LNG
cargoes in 2018.
Eni carries a Zacks Rank #4 (Sell). However, not all sector
stocks are performing as poorly. Zacks Ranked #1 (Strong Buy)
China Petroleum & Chemical Corp
) appear attractive for the short term.