Eni Engages Rig for Cua Lo Prospect - Analyst Blog
13 Mai 2013 - 5:10PM
Zacks
Italian operator, Eni
SpA (E), has engaged Ensco 107 jackup to carry out
drilling at the Cua Lo prospect on Block 105-110/04 in the Song
Hong basin shelf, offshore Vietnam and west-southwest of China's
Hainan Island.
Drilling of the Block 105-110/04 well is likely to commence by Jun
2013, subject to the release of the rig by the previous operator,
Mitra Energy Ltd.
According to the terms of the farm-out agreement entered with Eni
in early 2013 with respect to Block 105 and 120, joint venture
partner Neon Energy will be carried through the drilling of the Cua
Lo well up to a gross cost of $25 million.
Per the deal, Eni agreed to pay the cost of gathering 800 square
kilometers of 3D seismic in Block 105 and the cost of a 250 square
kilometer shoot over Block 120, as well as the drilling of one
exploration well in each block, in return for a 50% interest in the
blocks. Eni, the operator of the block, has a 50% working interest,
while KrisEnergy Ltd. and Neon Energy have a stake of 25% each. Any
expense beyond the cost cap will be shared by the partners in
accordance with their respective working interests.
The final location of the well will be ascertained on the outcome
of the analysis and interpretation presently being carried out on
3D seismic data covering the Cua Lo prospect.
In 2011, an independent report by Netherland Sewell &
Associates Incorporated (NASI) allocated the Cua Lo prospect a best
estimate gross unrisked prospective recoverable resource of 3.9
trillion cubic feet of gas to 13.9 TCF gas (high estimate).
The seismic data reveals features generally known as Direct
Hydrocarbon Indicators, which often signals the presence of
hydrocarbons. The latest 3D seismic data will validate the prospect
of the acreage and aid in locating the well to optimally target
multiple potential pay zones in an area that promises reservoir
development.
Eni holds a Zacks Rank #4 (Sell). However, there are other stocks
in the oil and gas industry like Dawson Geophysical
Company (DWSN), SM Energy Company (SM)
and Exterran Holdings, Inc. (EXH) that appear more
attractive in the short term. All three stocks carry a Zacks Rank
#1 (Strong Buy).
DAWSON GEOPHYS (DWSN): Free Stock Analysis Report
ENI SPA-ADR (E): Free Stock Analysis Report
EXTERRAN HLDGS (EXH): Free Stock Analysis Report
SM ENERGY CO (SM): Free Stock Analysis Report
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