Italian oil major
) has successfully drilled the first appraisal well - Sankofa
East 2A - of the Sankofa East oil discovery in the Offshore Cape
Three Points (OCTP) block.
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Spud 8 kilometers southwest of the discovery well Sankofa East
XI, the new well substantiates the extension of the oil
accumulation in the Cenomanian sequence. Located in the Tano
Basin offshore Ghana, about 50 kilometers off the coast of Ghana,
the appraisal well - Sankofa East 2A - was spud to a total depth
of 4,050 meters in water depth of 990 meters.
The well hit upon 23 meters of gas and condensate gross pay
(17 meters net), and 76 meters of gross oil pay (32 meters net)
in good sands of cretaceous age. Eni has projected the total
potential of the find at about 450 million barrels of oil in
place with recoverable resources of about 150 million barrels.
The outcome of the well's appraisal is significant as it
validates the commerciality of the OTCP block and acknowledges
the feasibility for further industrial and economic development
in the country. The data acquisition also confirms the hydraulic
communication in the oil prone reservoir between the discovery
and the appraisal well.
Eni, through its subsidiary Eni Ghana Exploration and Production
Limited, operates the OCTP block with a stake of 47.22%. Vitol
Upstream Ghana Limited and state company GNPC have an interest of
37.78% and 15%, respectively. Further, GNPC holds an option to
increase its holding by about 5%.
Eni's presence in Sub Saharan Africa dates back to 1960s.
Currently, the company operates two exploration offshore blocks -
OCTP and Keta - with yield of about 450,000 barrels of oil
equivalent per day.
Last month, Eni entered into a Heads of Agreement with US-based
Anadarko Petroleum Corporation
) for the development of natural gas reservoirs in offshore
Eni holds a Zacks Rank #4 (short-term Sell rating). Longer term,
we maintain our Neutral recommendation.