U.S. Markets closed
  • S&P 500

    3,821.55
    -78.56 (-2.01%)
     
  • Dow 30

    30,946.99
    -491.27 (-1.56%)
     
  • Nasdaq

    11,181.54
    -343.01 (-2.98%)
     
  • Russell 2000

    1,738.84
    -32.90 (-1.86%)
     
  • Crude Oil

    111.93
    +0.17 (+0.15%)
     
  • Gold

    1,821.20
    0.00 (0.00%)
     
  • Silver

    20.75
    -0.05 (-0.25%)
     
  • EUR/USD

    1.0529
    -0.0058 (-0.5475%)
     
  • 10-Yr Bond

    3.2060
    +0.0120 (+0.38%)
     
  • Vix

    28.36
    +1.41 (+5.23%)
     
  • GBP/USD

    1.2188
    -0.0083 (-0.6728%)
     
  • USD/JPY

    136.1390
    +0.6930 (+0.5116%)
     
  • BTC-USD

    20,318.55
    -514.43 (-2.47%)
     
  • CMC Crypto 200

    441.05
    -9.01 (-2.00%)
     
  • FTSE 100

    7,323.41
    +65.09 (+0.90%)
     
  • Nikkei 225

    27,049.47
    +178.17 (+0.66%)
     

Eni (E) Discovers Oil & Gas in Egypt's Meleiha Concession

  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
·4 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

Eni SPA E made multiple oil and gas discoveries in the Meleiha concession, situated in the Western Desert of Egypt.

With the discoveries, Eni adds 8,500 barrels of oil equivalent per day to its overall production. Eni, through its subsidiary IEOC, has a 38% ownership interest in the Meleiha concession.

The discoveries were achieved through the Nada E Deep 1X well, the Meleiha SE Deep 1X well and the Emry Deep 21 well. Nada E Deep 1X struck 60 meters of net hydrocarbon pay in the Cretaceous-Jurassic Alam El Bueib and Khatatba formations. Beside this, 30 meters of net hydrocarbon pay was found in the Meleiha SE Deep 1X well in the Cretaceous-Jurassic sands of the Matruh and Khatatba formations.

Then again, the Emry Deep 21 well encountered 35 meters of net hydrocarbon pay in the massive cretaceous sandstones of Alam El Bueib. The results, along with the discoveries made in 2021, give a 75% success rate. Per Eni, the wells have already commenced production, while other explorations are ongoing in the concession with favorable prospects.

Eni continues to seek its near-field exploration strategy in the mature basin of the Western Desert, aimed at maximizing production. With the recent acquisition of two exploration blocks, the company reiterates its commitment to acquire a new high-resolution 3D seismic survey in the Meleiha concession this year to investigate the gas potential of the area.

Eni has been contributing to Egypt’s growth since 1954. The company is the primary oil and gas producer in the country, with 360,000 barrels of oil equivalent per day. Notably, Eni engages in initiatives aimed at decarbonizing Egypt’s energy sector. This includes the development of CCS plants, renewable energy plants and agro feedstock for biorefining.

Company Profile

Headquartered in Rome, Italy, Eni is one of the leading integrated energy players in the world.

Zacks Rank & Other Stocks to Consider

Eni currently sports a Zack Rank #1 (Strong Buy).

Investors interested in the energy sector might look at the following companies that also presently flaunt a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Cactus Inc. WHD is involved in manufacturing, designing and selling wellhead and pressure-control equipment. At the end of the fourth quarter, Cactus had cash and cash equivalents of $301.7 million, which can provide it with immense financial flexibility. The company has a strong balance sheet. It revealed that it has no bank debt outstanding as of Dec 31, 2021.

Cactus’ earnings for 2022 are expected to increase 134.7% year over year. WHD’s board declared a quarterly cash dividend of 11 cents per share. This reflects an increment of 10% from the prior dividend payout.

Imperial Oil Limited IMO, based in Calgary, is one of the largest integrated oil companies in Canada. Its debt-to-capitalization of 19.3% is quite conservative versus 32.7% for the sub-industry it belongs to. Apart from low leverage for its industry, Imperial Oil has ample liquidity, with cash and cash equivalents of C$1.5 billion.

Imperial Oil’s earnings for 2022 are expected to increase 113% year over year. The company's board of directors recently approved a hike in the quarterly dividend payment. The new payout of 34 Canadian cents is 26% above the prior dividend.

PetroChina Company Limited PTR is China's largest integrated oil company. PetroChina is one of the largest producers of crude oil and natural gas in the world. At 2021-end, PTR had proved reserves of 6,064 million barrels of oil and 74,916 billion cubic feet of natural gas.

PetroChina’s earnings for 2022 are expected to increase 30.2% year over year. At 2021-end, PTR’s cash balance was RMB 136,789 million and long-term debt amounted to RMB 287,175 million. PetroChina’s debt-to-capital ratio was 16.9%.


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
 
Eni SpA (E) : Free Stock Analysis Report
 
PetroChina Company Limited (PTR) : Free Stock Analysis Report
 
Imperial Oil Limited (IMO) : Free Stock Analysis Report
 
Cactus, Inc. (WHD) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research