Petrobras (PBR) Unearths Pre-Salt Oil Discovery in Campos Basin
Petroleo Brasileiro S.A. or Petrobras PBR announced the detection of hydrocarbons in the wildcat well of the C-M-411 block, subsequent to the drilling of the well 1-BRSA-1377-RJS also known as Urissanê.
The C-M-411 block, which lies in the pre-salt Campos Basin off the coast of Brazil, was purchased by Petrobras during the 14th Bidding Round of the National Agency of Petroleum, Natural Gas and Biofuels (“ANP”) in September 2017. Additionally, the state-owned company acquired stakes in the CM-210, CM-277, CM-344, CM-346, and CM-413 blocks under the concession regime.
Notably, Petrobras is the operator of the block with 50% participating interest, while ExxonMobil Exploração Brasil Ltda, a subsidiary of integrated major Exxon Mobil Corporation XOM holds the remaining stake.
The 1-BRSA-1377-RJS well is situated approximately 200 kilometers along the coast of Rio de Janeiro state of Brazil and at a vertical height of 2,950 meters below the sea surface.
Importantly, the exploratory well spotted the presence of oil in reservoirs of the pre-salt section of the block. Petrobras mentioned that the well data will be examined for improved exploratory activities in the block and to identify the potential of the latest discovery.
Company Profile & Price Performance
Petrobras is the largest integrated energy firm in Brazil and one of the biggest in Latin America. Its activities include exploration, exploitation and production of oil from reservoir wells, shale and other rocks. Further to this, it comprises refining, processing, trading, and transportation of oil and oil products, natural gas, and other fluid hydrocarbons beside other energy-related operations.
The company’s shares have outperformed the industry in the past six months. Its stock has gained 28.6% compared with the industry’s 10.5% growth.
Zacks Rank & Stocks to Consider
Petrobras currently has a Zack Rank #3 (Hold).
Some better-ranked players in the energy space are Whiting Petroleum Corporation WLL and Royal Dutch Shell Plc RDS.A, each currently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Whiting Petroleum’s 2021 earnings are expected to increase 136.4% year over year.
Shell’s 2021 earnings are expected to rise 149.4% year over year.
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Petroleo Brasileiro S.A. Petrobras (PBR) : Free Stock Analysis Report
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