U.S. energy company
) has struck oil in the exploration well - Pecan-1 - in Deepwater
Tano/Cape Three Points license, offshore Ghana. The find came
across 245 net feet of oil pay in two separate Turonian
HESS CORP (HES): Free Stock Analysis Report
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The Pecan-1 well was drilled to reach a total depth of 15,420
feet in water depth of 8,245 feet. A widespread data acquisition
program was carried out and the well was sidetracked to attain
bypass cores. Currently, the well is being suspended.
Hess has made five discoveries in the block including Pecan-1.
Other finds include Almond, Beech and Hickory North that
encountered 53 net feet oil pay, 146 net feet oil pay and 98 net
feet gas condensate pay, respectively, and Paradise, which hit
120 net feet oil pay and 295 net feet gas condensate pay.
The company has a 90% stake in the block, while the remaining 10%
is held by Ghana National Petroleum Corporation. The company
proposes to perform pre-development and more exploration
operations in 2013.
Subsequently, Hess intends to drill the Cob prospect, situated
about 15 miles northeast of the Pecan-1 discovery.
This new oil find establishes Hess' hold in the emerging oil rich
region. In the recent past, the company has accelerated its
spending to finance its massive exploration program, which has
also witnessed a couple of dry holes. In order to reduce its
exposure to risky areas, Hess is focusing on its new strategy of
engaging in high-impact exploration areas.
Hess, which recently entered into an agreement with
Royal Dutch Shell plc
) to sell its interest in the Beryl area fields and the Scottish
Area Gas Evacuation System for about $525 million, holds a Zacks
#3 Rank that is equivalent to a Hold rating for a period of one
to three months. Longer term, we maintain our Neutral