Eni SpA Submits A Proposal For Performing Drilling In Alaska

Eni SpA (NYSE:E) intends to carry out a drilling program offshore Alaska, from the man-made island, Spy Island Drillsite (SID) in the Beaufort Sea. The company has submitted a proposal to the Bureau of Ocean Management (BOEM) for the same.

The proposed exploration plan (EP) is for the exploratory drilling of the company’s Nikaitchuq North Project, comprising of four exploration wells, two mainbores and two sidetracks from the Italian giant’s existing SID man-made gravel island situated on the State of Alaska lease.

About 3mi offshore of Oliktok Point lies SID. This man-made island is situated just south of the natural barrier island, Spy Island, in shallow water depths of 6-8 feet.

Beginning from the surface of SID, the proposed wildcats will extend subsurface of the ocean floor, ending in federal leases on the Outer Continental Shelf (OCS) of Alaska, Harrison Bay Block 6423 Unit, which contains leases OCS-Y-1753, OCS-Y-1754, and OCS-Y-1757.

Exploration and drilling activities proposed under this EP are planned to commence on Dec10, 2017, and continue till 2019. Eni expects to use the Doyon Rig 15 for drilling operations.

BOEM has 30 calendar days to appraise the EP according to the federal law and regulations.

BOEM says its appraisal will comprise a site-specific environmental assessment of the proposed exploration activities pursuant to the National Environmental Policy Act. By the end of the 30-day period BOEM may approve the EP, entail alteration to the EP or reject it.

Per BOEM, besides an approved EP, Eni is accountable for obtaining all appropriate permits from other state and federal agencies.

SID supports drilling and production operations in the Nikaitchuq Unit and has 36 slots for producers and injectors as well as slots for two Class I disposal wells. The current SID drilled wells consist of 18 production wells (9 dual-laterals), 13 injection wells and one Class I disposal well/waste injection facility.

Currently, there are four oil and gas producing islands in the waters of the Beaufort Sea - Spy Island, Northstar Island, Endicott Island, and Oooguruk Island. The construction of a fifth island, as proposed in a DPP submitted to BOEM by Hilcorp Alaska, is under evaluation by federal agencies.

Investor confidence on the Eni stock is reflected in its price chart. Shares of the company gained 1.1% in the last six months, while the Zacks categorized Oil & Gas – International Integrated industry registered a fall of 4.3% in the same time span.

Eni currently has a Zacks Rank #3 (Hold). Some better-ranked stocks from the same space are 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 an 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 an 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 an average negative earnings surprise of 275.46%.

Zacks' 2017 IPO Watch List

Before looking into the stocks mentioned above, you may want to get a head start on potential tech IPOs that are popping up on Zacks' radar. Imagine being in the first wave of investors to jump on a company with almost unlimited growth potential? This Special Report gives you the current scoop on 5 that may go public at any time.

One has driven from 0 to a $68 billion valuation in 8 years. Four others are a little less obvious but already show jaw-dropping growth. Download this IPO Watch List today for free >>