Yahoo Finance BP Unearths Oil at Puma West Prospect in Offshore Louisiana
BP P.L.C BP announced that it made a significant oil discovery at the Puma West exploration prospect in the deepwater Gulf of Mexico of the United States.
Notably, the well was drilled by BP on behalf of joint holders Chevron Corporation CVX and Talos Energy LLC TALO on the Green Canyon Block 821. BP operates the Puma West with a 50% participating interest, while Talos and Chevron own a 25% interest each.
The discovery was made on the west of the prolific Mad Dog field, which is operated by BP. Located about 131 miles off the Louisiana coast, the exploratory well was drilled at a vertical height of 23,530 feet, with 4,108 feet below the water surface.
In late 2019, BP started to drill and evaluate the Puma West prospect with the help of West Auriga, the ultra-deepwater drillship of Seadrill. In January 2020, drilling was stopped after setting the surface casing below salt and having reached a true vertical depth of roughly 21,500 feet. Notably, BP recommenced the drilling works in the fourth quarter of 2020.
The well encountered significant oil pay in a high-quality Miocene reservoir, which is said to possess fluid properties similar to high-yielding Miocene reservoirs nearby. BP mentioned that the discovery has a high probability for commercial hydrocarbons on the basis of preliminary data. Importantly, BP and partners would initiate an appraisal program to better define the discovered resource.
Company Profile & Price Performance
Headquartered in London, U.K., BP is a fully integrated energy company, with a strong focus on renewable energy.
Shares of the company have underperformed the industry in the past six months. Its stock has gained 57.1% compared with the industry’s 52.7% growth.
Zacks Rank & Another Stock to Consider
BP currently carries a Zack Rank #2 (Buy).
Another top-ranked player in the energy space is Eni S.P.A. E, currently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Eni’s earnings for 2021 are expected to rise 19.4% year over year.
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