BP Discovers Gas In Savannah & Macadamia Exploration Wells

BP plc (LON:BP)’s (NYSE:BP) associate company BP Trinidad & Tobago (“bpTT”) announced that it has made two major gas discoveries at Savannah and Macadamia exploration wells, offshore Trinidad.

The results of these wells have unlocked about 2 trillion cubic feet (tcf) of gas in place to support new developments in their respective areas.

Drilled using a semi-submersible rig into an untested fault block, situated east of the Juniper field and in a depth of over 500 feet under water, the Savannah exploration well was located about 80 kilometers off the south-east coast of Trinidad. The well penetrated hydrocarbon-bearing reservoirs in two main intervals with about 650 feet net pay.

Based on the success of the Savannah well, the company anticipates developing these reservoirs through future tieback to the Juniper platform which is scheduled to be commissioned around mid-2017.

The Macadamia well was drilled to assess exploration and appraisal segments below the existing SEQB discovery which sits 10 kilometers south of the producing Cashima field. The well penetrated hydrocarbon-bearing reservoirs in seven intervals with about 600 feet net pay. Combined with the shallow SEQB gas reservoirs, the Macadamia discovery is projected to support a new platform within the post-2020 timeframe.

BP Trinidad and Tobago holds a 100% working interest in Savannah and Macadamia.

These discoveries emphasize BP’s commitment to see the advantages of the considerable investment they have made in seismic processing and Ocean Bottom Seismic acquisition. Savannah and Macadamia exhibit that with the right technology they can continue to uncover the full potential of the Columbus Basin.

Investors’ confidence on BP’s stock is reflected in its price chart. Shares of the company have rallied 5.7% in the last three months, while the Oil & Gas – International Integrated industry declined 2%.

BP currently has a Zacks Rank #5 (Strong Sell). Some better-ranked stocks from the same space include SunCoke Energy, Inc. (NYSE:SXC) , Enbridge Energy, L.P. (NYSE:EEP) and Canadian Natural Resources Limited Ltd. (TO:CNQ) . All these stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

SunCoke Energy posted a positive earnings surprise of 120.0% in the preceding quarter. The company beat estimates in two of the four trailing quarters with average negative earnings surprise of 35.78%.

Enbridge Energy posted a positive earnings surprise of 128.57% in the preceding quarter. The company beat estimates in three of the four trailing quarters with average positive earnings surprise of 38.22%.

Canadian Natural Resources posted a positive earnings surprise of 30.77% in the preceding quarter. It surpassed estimates in two of the four trailing quarters with average negative earnings surprise of 275.46%.

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