Energy giant BP plc (LON:BP) (NYSE:BP) and its joint venture partner, Kosmos Energy Ltd. (NYSE:KOS) , recently announced a major gas discovery off the coast of Senegal. The discovery was made in the Yakaar-1 exploration well.
According to Kosmos Energy, the exploration well has come across a resource containing about 15 trillion cubic feet of Pmean gas. This is in line with the company’s pre-drill prospects.
Notably, this marks Kosmos Energy's sixth back-to-back successful exploration in this stretch and clearly indicates its 100% success rate.
The Yakaar discovery, alongside the Teranga discovery made last year, are expected to hold enough resources to support the creation of another liquefied natural gas hub in the basin.
Location
The Yakaar-1 well, where the discovery was made, is located in the Cayar Offshore Profond block. It is almost 95 kilometers northwest of Dakar and 40 kilometers west of the Teranga discovery, which was another find by Kosmos Energy. The total depth of the well is approximately 4,700 meters or 15,420 feet. The joint venture used Atwood Achiever drillship for the drilling. BP strongly believes that offshore Senegal and Mauritania are some of the world-class hydrocarbon basins.
About the Company
BP is the holding company of one of the world's largest petroleum and petrochemicals groups. The company is involved in the exploration and production of crude oil and natural gas and manufacturing and marketing of petrochemicals. The company has increasing activity in gas and power as well as solar power generation. BP has well-established operations in Europe, North and South America, Australasia and Africa.
Price Performance
In the last two years, the company’s shares have underperformed the Zacks categorized Oil and Gas - International – Integrated industry. The company’s shares lost 16.98%, while the industry registered a decrease of 13.71% in the same period.
Zacks Rank and Stocks to Consider
BP presently has a Zacks Rank #5 (Strong Sell). Some better-ranked stocks in oil and energy sector are Penn Virginia Corporation (NASDAQ:PVAC) and Bellatrix Exploration Ltd (TO:BXE) . Both these stocks flaunt a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Penn Virginia’s year-over-year sales growth for the current year is expected to increase 24.75%. The company recorded a positive earnings surprise of 49.02% in the first quarter of 2017.
Bellatrix is expected to record 22.09% year-over-year growth in 2017 sales. The company had an average positive earnings surprise of 58.54% in the last four quarters.
Looking for Ideas with Even Greater Upside?
Today's investment ideas are short-term, directly based on our proven 1 to 3 month indicator. In addition, I invite you to consider our long-term opportunities. These rare trades look to start fast with strong Zacks Ranks, but carry through with double and triple-digit profit potential. Starting now, you can look inside our home run, value, and stocks under $10 portfolios, plus more.
Click here for a peek at this private information >>
Kosmos Energy Ltd. (KOS): Free Stock Analysis Report
Bellatrix Exploration Ltd (BXE): Free Stock Analysis Report
BP p.l.c. (BP): Free Stock Analysis Report
Penn Virginia Corporation (PVAC): Free Stock Analysis Report
Original post
Zacks Investment Research