Brazilian state-run energy giant Petroleo Brasileiro S.A. or Petrobras (PBR) declared the findings of good quality oil at Pudim well, located in Espirito Santo basin. The company found oil after drilling at a depth of 4,670 meters.
When the company ran the initial drilling test on the offshore well last year, it reached a depth of 4,305 to 4,383 meters. At that time, Petrobras said that it found oil of roughly 35° API.
The integrated energy player has a 65% ownership in the consortium which has drilled the well in the Espirito Santo basin. Petrobras is also the operator of the project.
Separately, the company announced that it has finished negotiations with its creditors regarding the risk of the delayed release of its third-quarter 2014 results. Per the previous agreement with the creditors, the Brazilian energy firm was required to release its third-quarter reports to investors by Dec 29, 2014 or pay back its debts early. Following the discussion, Petrobras has been allowed to release its third-quarter earnings by the end of this month, thus eliminating the risk of early debt repayment.
Headquartered in Rio de Janeiro, Petrobras’ activities include: exploration, exploitation and production of oil from reservoir wells, shale and other rocks, as well as refining, processing, trading and transportation of oil and oil products, natural gas and other fluid hydrocarbons, in addition to other energy-related activities.
The company currently carries a Zacks Rank #3 (Hold), implying that it will perform in line with the broader U.S. equity market in the next one to three months.
Meanwhile, better-ranked players in the energy sector include Spectra Energy Partners LP (SEP), Cheniere Energy Partners LP (CQP) and Seadrill Partners LLC (SDLP). All these stocks sport a Zacks Rank #1 (Strong Buy).
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