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ExxonMobil Hits Gas in Cyprus, Sees Reserves Growth in 2018

Zacks Equity Research

Exxon Mobil Corporation XOM recently announced the discovery of natural gas in Glaucus-1 well, located off the coast of Cyprus.

After drilling the well safely to 13,780 feet in Block 10, the company found 436 feet of gas-bearing reservoir. ExxonMobil added that the initial interpretation of well data suggests that the new discovery may comprise 5 trillion to 8 trillion cubic feet of natural gas resource. However, the largest publicly-traded integrated energy firm will carry on further analysis to confirm the potential of the resource.

It is to be noted that ExxonMobil is the operator of block 10, spreading across 2,572 square kilometers, with 60% ownership stake. The remaining 40% interest is owned by Qatar Petroleum International Upstream O.P.C.

ExxonMobil will carry out further evaluation to find that the new discovery could be a major source of clean energy to the global market.

In a separate release, ExxonMobil announced that through 2018 it made an addition of 4.5 billion oil-equivalent barrels of proved oil and gas reserves. Thus, the company was able to replace 313% of production through 2018. As of Dec 31, 2018, ExxonMobil recorded its reserves at 24.3 billion oil-equivalent barrels, representing an increase of 23% year over year, thanks to several offshore Guyana discoveries, acquisition of high-quality Brazilian resources and contributions from the prolific Permian basin.  

According to ExxonMobil’s estimation, the huge addition to reserves in 2018 has expanded the life of its reserves to 17 years, considering the current rate of production.

Headquartered in Irving, TX, ExxonMobil currently carries a Zacks Rank #3 (Hold). Meanwhile, better-ranked players in the energy space include Jones Energy Inc. JONE, Golar LNG Partners LP GMLP and Sunoco LP SUN. All the stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.  

Jones Energy expects 2019 earnings growth of 19% year over year.

Golar LNG delivered average positive earnings surprise of 92.8% in the preceding four quarters.

Sunoco LP has average positive earnings surprise of 18.39% for the trailing four quarters.

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