ExxonMobil Corporation XOM has confirmed the availability of hydrocarbons in P’nyang South-2 well, located in the Western Province of Papua New Guinea.
On drilling the onshore P’nyang South-2 well, to a total depth of 8,940 feet (2,725 meters), ExxonMobil hit upon high-quality, hydrocarbon-bearing reservoirs in the Toro and Digimu sandstones. The drilling outcome has surpassed ExxonMobil’s expectations. The well established extension to the southeast of the field.
Currently, the company, along with its co-venture partners, is appraising the results obtained from drilling of the well to evaluate the resource potential of the P’nyang field. Consequently, the company will decide on the development to be undertaken for the field in synchronization with the government of Papua New Guinea.
ExxonMobil, operator of the license, has a holding of 49% in the block. Oil Search is the drilling operator with a stake of 38.5%, while JX Nippon holds the remaining 12.5%.
On Oct 22, 2017, Oil Search commenced drilling the P’nyang South-2 well. The petroleum retention license 3, which spreads across 105,000 acres (425 square kilometers), is the site for the well.
ExxonMobil’s resource potential in Papua New Guinea has increased considerably as a result of its acquisition of InterOil Corporation, increase in evaluated reserves at Hides in the existing PNG LNG project and the company’s recent Muruk discovery. The low cost of natural gas supply in the region provides additional benefits.
The company is continuously making efforts to expand the onshore and offshore exploration programs to enhance its resources.
ExxonMobil’s shares have gained 5.7% against the industry’s increase of 12.1% in the last three months.
Zacks Rank & Other Stocks to Consider
ExxonMobil carries a Zacks Rank #2 (Buy). Some other top-ranked players in the energy sector include Statoil ASA STO, Pioneer Natural Resources Company PXD and Denbury Resources Inc DNR. All these stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Statoil, based in Norway, is a major international integrated oil and gas company. It witnessed an average negative earnings surprise of 8.44% in the last four quarters.
Headquartered at Irving, TX, Pioneer Natural Resources Company is an independent oil and gas exploration and production company. The company delivered an average positive earnings surprise of 67.62% over the preceding four quarters.
Headquartered at Plano, TX, Denbury Resources is engaged in the exploration, production and development of natural gas properties. The company pulled off an average positive earnings surprise of 125.00% during the same time frame.
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