Yahoo Finance Eni (E) Makes Oil Discovery in Eban Well Offshore Ghana
Eni SPA E recently announced a major oil find in the Eban exploration prospect, located offshore Ghana. The new discovery is expected to boost its footprint in Ghana, where it has been operating since 2009, and has a gross daily production volume of around 80,000 barrels of oil equivalent.
The Eban - 1X exploration well lies in the Cape Three Points Block 4, wherein the company made the Akoma discovery in 2019. Its early estimates suggested that the Eban-Akoma complex will have a potential of 500-700 million barrels of oil equivalent. The well was drilled by Saipem 10000 drilling ship of Saipem SPA SAPMF at 545 meters of water depth.
The exploration well is located around 8 kilometers Northwest of Sankofa Hub, wherein the John Agyekum Kufuor floating production storage and offloading vessel is working. As such, the company is expected to use the subsea tie-in option and connect the new find to the existing infrastructure. This will allow Eni to fast track the discovery to production. Also, the move will increase peak production from the site.
The company’s constant efforts to expand upstream operations will go a long way in generating growth. Moreover, the start-up of key upstream projects around the world is expected to enable it to achieve a compound annual growth rate of 4% from 2021 through 2024.
Eni is the operator of the block with a 42.47% stake. As partners, it has Vitol, Ghana National Petroleum Corporation, Woodfields and GNPC Explorco with 33.97%, 10%, 9.56% and 4% interest, respectively.
Price Performance
Eni’s shares have increased 9.3% in the past six months compared with 19.3% rise of the industry.
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Zacks Rank & Key Picks
The company currently has a Zacks Rank #3 (Hold). Some better-ranked stocks from the energy space include Antero Resources Corporation AR and Magellan Midstream Partners, L.P. MMP, each having a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Antero Resources’ profits for 2021 are expected to surge 369.6% year over year.
Magellan Midstream’s bottom line for 2021 is expected to rise 7.2% year over year.
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