BP-Eni JV Strikes Gas Offshore Angola, Estimates Over 1 Tcf Gas Find

BP plc BP and Eni SpA’s E joint venture, Azule Energy, has encountered gas in an offshore block in Angola. Angola’s National Agency of Petroleum, Gas and Biofuels (“ANPG”) stated that the gas discovery was made in an exploration well named Gajajeira-01. The exploration well is located within Block 1/14 in the Lower Congo Basin. Per Azule Energy, Gajajeira-01 is the first well in the country dedicated solely to gas discoveries in Angolan waters.Reservoir Details and Geological InsightsThe exploratory well was drilled at a depth of 95 meters in water. It encountered gas and condensate reserves in the Lower Oligocene formation, dubbed LO100. The company noted that the Gajajeira-01 exploratory well suggests that the Lower Congo Basin in Angola holds significant potential. Block 1/14 is operated by Azule Energy, which holds a 35% interest, along with its partners, Equinor, Sonangol E&P and Acrep S.A., holding 30%, 25% and 10% stake, respectively.Moreover, the company noted that preliminary assessments of reservoir quality yielded encouraging results. The estimated volume of gas in the reservoir is anticipated to surpass 1 trillion cubic feet (Tcf), with associated condensates reaching up to 100 million barrels. Drilling activities at the well are expected to continue, with efforts now directed toward the last interval of the Lower Oligocene target, named LO300. The first section of the exploratory well utilized advanced formation-evaluation and control techniques to determine fluid properties and hydrocarbon reservoir quality. The preliminary results suggest that several reservoirs of good quality and high flow rates were encountered while drilling.Future Development PlansAzule Energy will continue operations at the gas discovery to evaluate its full potential. The company will then collaborate with its partners in the block to establish a plan for the potential development of the gas discovery. The gas find in the Gajajeira-01 exploration well should support the long-term energy requirements, contributing to Angola’s energy security. The country is trying to push its current oil production to 1.1 million barrels per day. Angola’s oil production had reached its peak in 2008, when the country was delivering output at 2 million barrels per day. However, oil production in Angola has declined since then due to reduced investment in offshore developments. The country is now trying to increase oil production by developing its rich offshore reserves.Zacks Rank & Key PicksCurrently, BP and E carry a Zacks Rank #3 (Hold).Some better-ranked stocks from the energy sector are MPLX LP MPLX and W&T Offshore WTI, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here.MPLX LP owns and operates a wide range of midstream assets. The partnership's midstream assets include oil and natural gas gathering systems and transportation pipelines for crude, natural gas and refined petroleum products. MPLX is least exposed to commodity price fluctuations as it generates stable fee-based revenues. Furthermore, it surpasses its industry peers in terms of distribution yield, reflecting its commitment to returning capital to its unitholders.W&T Offshore benefits from its prolific Gulf of America assets, which offer low decline rates, strong permeability and significant untapped reserves. The company’s recent acquisition of six shallow-water fields in the Gulf of America boosts its production prospects in the future, which is expected to significantly benefit WTI.7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.5% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>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 Eni SpA (E): Free Stock Analysis Report W&T Offshore, Inc. (WTI): Free Stock Analysis Report MPLX LP (MPLX): 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