PetroChina Company LimitedPTR recently witnessed positive results from an exploration well in the Tarim Basin. PetroChina, a subsidiary of CNPC, has obtained oil and gas from the Zhongqiu-1 well, which is located in the north-west region of Xinjiang. The location has not been exploited yet.
The company achieved a natural gas flow of 330,000 cubic meters per day from the well. Moreover, it has attained 21.4 cubic meters of condensate per day from the well, which falls in the southern part of the Kuche trough. Tarim Basin is one of the largest sedimentary basins in China, spanning 560,000 square kilometers. The basin is expected to have probable reserves of 6 billion tons of oil along with 8 trillion cubic meters of natural gas.
Notably, the company intends to achieve 30 million tons of oil equivalent production per annum from the basin by 2020. The targeted production volume incorporates around 26 billion cubic meters of natural gas. The announcement of positive results from Zhongqiu-1 is expected to support China's target of increasing domestic hydrocarbon exploration and production. The Chinese government is currently trying to enhance national energy security, as the economy is growing, in turn leading to a rise in demand for energy in the country.
PetroChina is the largest integrated oil company in China. It has gained 0.9% in the past year against 30.4% fall of its industry .
Zacks Rank and Stocks to Consider
Currently, the stock carries a Zacks Rank #3 (Hold). Investors interested in the energy sector can opt for some better-ranked stocks given below.
Cabot Oil & Gas Corporation COG is an exploration and production company that sports a Zacks Rank #1 (Strong Buy). The company's bottom line for 2018 is likely to improve 113% year over year. You can see the complete list of today's Zacks #1 Rank stocks here .
Eni SpA E is an integrated international energy company, which also holds a Zacks Rank #1. The company's bottom line for 2018 is anticipated to improve 122.5% year over year.
SilverBow Resources Inc. SBOW , an upstream company carrying a Zacks Rank #1, is expected to witness 19% top-line growth in 2018.
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