Eni (E) Optimistic On Discovery In Egypt's Nour Prospect

Eni SpA (NYSE:E) makes discovery in the Nour exploration prospect located in Eastern Egyptian Mediterranean. The company hit oil in Block 15/06 in the Agogo exploration prospect, located in Angola’s deep water on Mar 13.

The gas discovery at the Nour-1 New Field Wildcat (NFW) is under appraisal. The field is located in the Nour North Sinai Concession in the Eastern Egyptian Mediterranean, about 50 kilometers north of the Sinai peninsula.

The well encountered 33 meters of gross sandstone pay with good petrophysical properties and an estimated gas column of 90 meters in the Tineh formation of Oligocene age. The company has acquired detailed and exact data post the discovery. However, Eni is yet to conduct tests of the well.

Eni, as the operator of the concession, has a stake of 40% in participation with Egyptian Natural Gas Holding Company (EGAS). The other partners include BP plc (LON:BP), Mubadala Petroleum and Tharwa Petroleum Company holding 25%, 20% and 15%, respectively.

The company will initiate feasibility studies that are required to accelerate the exploitation of these new resources after concluding the assessment of the discovery. The drilling of new resources will capitalize the synergies from existing facilities.

Eni’s presence in Egypt dates back to 1954. Being among the country's leading producer, Eni has equity of more than 340,000 barrels of oil equivalent per day that is expected to grow further in 2019 with the ramp up of the Zohr Project.

The company allocates 70% of its investment funds toward Egypt and intends to spend about $3 billion in the country during the upcoming period. So far, it has invested $8.4 billion in the Noras and Zohr fields.

Zacks Rank & Key Picks

Currently, Eni carries a Zacks Rank #3 (Hold).

Some better-ranked players in the energy space are Antero Resources Corporation (NYSE:AR) , CrossAmerica Partners L.P. (NYSE:CAPL) and NuStar Energy L.P. (NYSE:NS) . While Antero Resources and CrossAmerica Partners sport a Zacks Rank #1 (Strong Buy), NuStar Energy carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

CrossAmerica Partners is involved in the wholesale distribution of motor fuels, comprising gasoline and diesel fuel. The company delivered an average positive earnings surprise of 655% in the last four quarters.

Antero Resources’ is an independent explorer, primarily engaged in the acquisition and development of natural gas, natural gas liquids and oil resources in the Appalachian Basin. The company earnings beat the Zacks Consensus Estimate in two straight quarters.

San Antonio, TX-based NuStar Energy is a midstream energy company. For 2019, its bottom line, which has witnessed three upside revisions in the past 60 days, is expected to grow 64.2% year over year.

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