BP Confirms Significant Hydrocarbon Discovery in the Orange Basin

BP plc BP, the British oil and gas major, has made a new hydrocarbon discovery in the Orange Basin offshore Namibia. The discovery was initially reported by Rhino Resources, an African exploration and production company, and later confirmed by BP. BP mentioned that the exploratory well, Volans-1X, drilled in the Petroleum Exploration License 85 (PEL85), has yielded encouraging results.Volans-1X Well Encounters Rich Gas CondensatePer BP’s announcement, the well has been drilled to a total true vertical depth subsea of 4,497.5 meters. The well has successfully reached the Upper Cretaceous geological formation. Additionally, the well came across 26 meters of net pay in reservoirs containing rich gas condensate. The reservoir has demonstrated excellent petrophysical properties, likely showing high porosity and good permeability. No observable water contact has been reported. BP also stated that the initial analysis of two samples from the exploration campaign has indicated a high condensate-to-gas ratio exceeding 140 barrels per million standard cubic feet (bbl/mmscf). This signifies that the gas is liquid-rich, enhancing the commercial value of the hydrocarbon discovery.The Volans-1X well was drilled by Rhino Resources, which holds a 42.5% working interest (WI) and is the operator of PEL85. The other partners in the license include Azule Energy holding a 42.5% WI, NAMCOR with a 10% stake and Korres Investments with a 5% stake. Azule Energy is a 50-50 joint venture between BP and Eni. The company has previously made significant oil and gas discoveries in Africa, including Angola’s Gajajeira-01 gas discovery. Orange Basin Emerging as a Hotspot for Global Energy MajorsThe Orange Basin in Namibia has garnered significant attention in recent years. Several major oil companies have made similar discoveries in the region. Namibia aims to follow a similar path to Guyana, a South American nation, which gained prominence in the energy landscape after several major offshore discoveries were made in Guyanese waters. Guyana has experienced a major oil boom because of these discoveries, making it the fastest-growing economy in the world. However, Namibia falls short in terms of infrastructure development, which makes it challenging to develop the region’s oil and gas discoveries. Without proper infrastructure, developing these resources becomes costlier and extends project timelines, thereby making it even more difficult to realize their value quickly.BP’s Zacks Rank and Key PicksBPcurrently carries a Zacks Rank #3 (Hold).Some better-ranked stocks from the energy sector are Cheniere Energy Inc. LNG, Archrock, Inc. AROC and TechnipFMC plc FTI. While Cheniere Energy and Archrock sport a Zacks Rank #1 (Strong Buy) each at present, TechnipFMC carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.Cheniere Energy is involved in LNG-related businesses, which include LNG terminals and natural gas marketing. The company has achieved a milestone with the first production from the first LNG train of its Corpus Christi Stage 3 Liquefaction Project. The project, which includes seven midscale LNG trains, aims to expand the production capacity of the Corpus Christi Liquefaction facility. This expansion is expected to strengthen Cheniere's position in the rapidly growing global LNG market, enabling it to meet the rising demand for LNG both in the United States and internationally.Archrock is an energy infrastructure company based in the United States with a focus on midstream natural gas compression. It provides natural gas contract compression services and generates stable fee-based revenues. With natural gas playing an increasingly important role in the energy transition journey, AROC is expected to witness sustained demand for its services.TechnipFMC plcis a leading manufacturer and supplier of products, services and fully integrated technology solutions for the energy industry. FTI’s project backlog, now at $15.8 billion, has grown sequentially in six of the last seven quarters, reinforcing long-term revenue visibility for the company.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the favorite stock to gain +100% or more in the months ahead. They includeStock #1: A Disruptive Force with Notable Growth and ResilienceStock #2: Bullish Signs Signaling to Buy the DipStock #3: One of the Most Compelling Investments in the MarketStock #4: Leader In a Red-Hot Industry Poised for GrowthStock #5: Modern Omni-Channel Platform Coiled to SpringMost of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor. While not all picks can be winners, previous recommendations have soared +171%, +209% and +232%.Download Atomic Opportunity: Nuclear Energy's Comeback free today.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report BP p.l.c. (BP): Free Stock Analysis Report TechnipFMC plc (FTI): Free Stock Analysis Report Cheniere Energy, Inc. (LNG): Free Stock Analysis Report Archrock, Inc. (AROC): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks