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BP Strikes Gas in North Damietta Offshore Concession Again - Analyst Blog

British oil giant BP plcBP again struck gas in the North Damietta Offshore Concession in the East Nile Delta. This is considered to be an important discovery in the Concession.

Currently being drilled using the 6th generation semi-submersible rig Maersk Discoverer, the Atoll-1 deepwater exploration well, reached a depth of 6,400 meters and penetrated about 50 meters of gas pay in high quality Oligocene sandstones.

A major find, Atoll-1 is considered to be the deepest well ever drilled in Egypt. Another 1 kilometer is yet to be drilled in the well to assess the same reservoir section which was found to be gas bearing in BP's major 2013 Salamat discovery, 15 kilometers to the south.

Drilled in 923 meters water depth around 80 kilometers north of Damietta city, Atoll-1 lies 15 kilometers north of Salamat and 45 kilometers to the north-west of Temsah offshore facilities. BP has a 100% stake in the discovery. The concession is estimated to have a potential of more than 5 trillion cubic feet.

BP has been present in Egypt since the last five decades. The company is one of the largest foreign investors in the country with investments exceeding $25 billion. BP's business in Egypt is mainly concentrated on oil and gas exploration and production.

In recent years BP has made a string of discoveries in Egypt comprising Taurt North, Seth South and Salmon and Rahamat, Satis, Hodoa, Notus and Salamat.

BP currently carries a Zacks Rank #4 (Sell). Better-ranked stocks from the oil and gas sector include Valero Energy Partners L.P. VLP , Western Gas Equity Partners, L.P WGP and Hallador Energy Co. HNRG . Each of these stocks sports a Zacks Rank #1 (Strong Buy).

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BP PLC (BP): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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