Yahoo Finance Eni (E) Lifts Oil Resources Estimate for Mexico's Amoca Field
Integrated energy firm Eni SpA E recently raised the estimate of crude oil and natural gas resources at the Amoca field to 1 billion barrels of oil equivalent. It is to be noted that the field, where the company has 100% ownership, is located off the coast of Mexico.
The company recently drilled Amoca-3 well and found the presence of considerable amount of crude. The successful appraisal of the well has led Eni to increase its upstream operations in the offshore Mexico area.
With the drilling of Amoca-3, the firm’s estimated resource of Amoca field went up considerably. Majority of the resources consists of crude oil. According to Eni, the exploration and production activities in the Amoca field are ideal especially in the situation when oil and natural gas prices have been low for a length of time.
The appraisal well is situated at the shallow water depth of 25 meter below the water. Eni drilled the appraisal well upto a depth of 4330 meters and found net oil pay of 410 meters -- signifying the measure of the part of the reservoir consisting of economically recoverable crude.
Headquartered in Rome, Italy, Eni is an integrated energy company having both upstream and midstream operations. We believe that Eni’s constant efforts to expand its upstream operations in Cyprus, Egypt, Vietnam, Indonesia, Pakistan and Kenya will go a long way in generating profitable growth.
However, the company’s earnings surprise history is not impressive. Also, Eni’s shares have underperformed the Zacks categorized Oil & Gas-International Integrated industry during the last one year. The stock lost almost 9%, while the broader industry declined 6.8% during the same time frame.
As a result, Eni currently carries a Zacks Rank #3 (Hold). Meanwhile, better-ranked players in the energy sector are Canadian Natural Resources Limited CNQ, Delek US Holdings Inc. DK and Pembina Pipeline Corporation PBA. All the stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
We expect year-over-year earnings growth of almost 725% at Canadian Natural in 2017.
Delek US Holdings managed to surpass the Zacks Consensus Estimate in each of the four quarters, with an average positive earnings surprise of 60.68%.
Pembina Pipeline’s 2017 earnings will likely grow over 87% year over year.
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