ExxonMobil (XOM) Gets Go-Ahead for 35-Well Exploration Project
Exxon Mobil Corp XOM led consortium was given approval by Guyana's environmental regulator to drill 35 new exploration and appraisal wells in the Stabroek offshore block through 2028. The environmental impact statement and environmental impact assessment of the project's cumulative effects were reviewed by the agency before the multi-well project was given the go-ahead.
According to a Jul 2 statement from the Environmental Protection Agency (EPA), the project must be conducted in accordance with good environmental practices, and in a manner that avoids, prevents and minimizes any adverse effects which could result from the activity, per media reports.
The block's operator, holding 45% interest, is an ExxonMobil affiliate named Esso Exploration and Production Guyana Ltd. (EEPGL). EEPGL intends to conduct more research and assess the hydrocarbon reserves in the block. The precise locations for the 35 exploration and appraisal well project are still being determined.
The current work schedule runs from the third quarter of 2023 through 2028. If discoveries are made, additional evaluation of commercial viability may be done with subsequent wells. As a result, schedules may shift, but EEPGL will keep submitting the required well data to the EPA in order to receive approval for operating permits before the relevant spud dates.
Zacks Rank & Key Picks
ExxonMobil currently carries a Zack Rank #3 (Hold).
Some better-ranked stocks in the energy sector are Evolution Petroleum Corporation EPM, NGL Energy Partners LP NGL and RGC Resources Inc. RGCO. While Evolution Petroleum sports a Zacks Rank #1 (Strong Buy), both NGL Energy Partners and RGC Resources carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Evolution Petroleum is an independent energy company. It was formed to acquire and develop oil and gas fields and apply both conventional and specialized technology to accelerate production, particularly in low-permeability reservoirs. EPM has witnessed an upward earnings estimate revision for 2023 and 2024 in the past 60 days.
NGL Energy Partners, headquartered in Tulsa, OK, is a limited partnership operating a vertically-integrated propane business with three operating segments, which are retail propane, wholesale supply and marketing, and midstream. NGL has witnessed an upward earnings estimate revision for 2024 in the past 30 days.
RGC Resources is a holding company that offers energy and associated products and services through its operational subsidiaries which are Roanoke Gas Company and RGC Midstream, LLC. RGCO has thousands of customers through its natural gas distribution companies that serve the Roanoke Valley and Bluefield, Virginia and West Virginia areas.
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