Harbour (HBRIY) Propels Energy Reserves Exploration Efforts
Harbour Energy HBRIY, the U.K. based exploration and production player, has initiated the drilling of Gayo-1 exploration well on Dec 31, 2023, offshore Indonesia.
The company plans to deploy the West Capella ultra deepwater drillship for the Gayo-1 project, which reported a major gas discovery in the Layaran-1 exploration well, undertaken by Mubadala Energy. The company also declared that Gayo-1 would be drilled upto a depth of 11,733 feet.
Banking on the success of the Layaran-1 well and the Timpan-1 exploration well, SKK Migas, Indonesia’s government regulator, hopes to discover significantly large reserves of oil and gas in the Gayo-1 exploration well. Migas declared that the drilling should take around 78 days to complete, including well testing.
The regulatory body added that the well’s potential recoverable gas reserves were 723 billion cubic feet with 33.5 million barrels of liquids.
Building on the previous success of substantial natural gas reserves in the Timpan-1 exploration well in 2022, the Gayo-1 exploration well project is aimed at discovering potential gas reserves in the Andaman II block, off the coast of Indonesia.
Harbour holds a 40% operating interest in the Andaman II block through a subsidiary, alongside Mubadala Energy and BP, which hold a 30% stake each. Mubadala Energy operates in the South Andaman Block, where the Layaran-1 exploration well was drilled. Harbour shared its plan to drill four exploration wells in the South Andaman Block, in a partnership with Mubadala Energy.
HBRIY is a London-listed independent oil and gas company. Apart from holding a leading position in the U.K., the company has interests in Indonesia, Vietnam, Mexico and Norway as well.
Zacks Rank & Key Picks
Currently, Harbour carries a Zacks Rank #3 (Hold).
Investors can also look at some better-ranked stocks in the energy sector, such as Sunoco LP (SUN), Vaalco Energy (EGY) and Western Midstream Partners, LP (WES). While Sunoco and Vaalco Energy sport a Zacks Rank #1 (Strong Buy) each, Western Midstream Partners carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Sunoco is one of the largest independent distributors of motor fuels to customers across the United States. Its current annual dividend yield is 5.8% compared with the industry’s average of 4.7%.
Vaalco Energy is an independent energy company involved in upstream operation business with a diversified presence in Africa and Canada. The company has a very positive outlook for fiscal 2024. The bottom-line estimate is pegged at $1.49 per share, indicating a 325.7% increase from 35 cents in the previous year.
Western Midstream Partners has a profitable portfolio of midstream assets. The midstream operator recently acquired Meritage Midstream Services II, LLC in the Powder River Basin, making WES the largest gathering and processing operator in the region. WES shows a noticeable increase in total throughput for natural gas, crude oil, NGLs, and produced water propelled by new productions coming online and effective operational efficiency in the Delaware Basin.
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