On Mar 12, 2014, Brazilian state-run energy giant,
Petroleo Brasileiro SA or Petrobras
) reported the completion of drilling wildcat well
1-BRSA-1205-RNS (Pitu Well). Petrobras also revealed the new
found existence of intermediate oil (24º API) in the Potiguar
Basin while drilling the well which is situated at water depths
of roughly 1,731 meters.
BP PLC (BP): Free Stock Analysis Report
PETROBRAS-ADR C (PBR): Free Stock Analysis
PATTERSON-UTI (PTEN): Free Stock Analysis
WARREN RSRCS (WRES): Free Stock Analysis
To read this article on Zacks.com click here.
Petrobras reached a depth of roughly 5,353 meters while drilling
the well and discovered a hydrocarbon column of 188 meters.
As an operator, Petrobras holds an 80% ownership in the
concession BM-POT-17, where the wildcat well is located. While
the rest 20% is owned by Petrogal Brasil SA.
Last year, BP Energy do Brasil Ltda., an affiliate of U.K.
), entered into a farm-out agreement with Petrobras to acquire a
40% interest in BM-POT-17, dependant on regulatory approvals. On
approval, BP Energy do Brasil Ltda will hold a 40% interest in
BM-POT-17, Petrogal Brasil SA will maintain a 20% share while
Petrobras as an operator will own 40%.
Petrobras is the largest integrated energy firm in Brazil and one
of the largest in Latin America. The company's activities
include: exploration, exploitation and production of oil from
reservoir wells, shale and other rocks. The company also engages
in the refining, processing, trading and transportation of oil
and oil products, natural gas and other fluid hydrocarbons, in
addition to other energy-related activities.
Headquartered in Rio de Janeiro, Petrobras currently holds a
Zacks Rank #3 (Hold), implying that it is expected to perform in
line with the broader U.S. equity market over the next one to
Meanwhile, one can look at better-ranked players in the energy
Warren Resources Inc.
Patterson-UTI Energy Inc.
). Both the stocks sport a Zacks Rank #1 (Strong Buy).