Brazilian state-run energy giant Petroleo Brasileiro S.A. or Petrobras PBR has confirmed the presence of light oil in the second well in Carcará area, situated in the ultra-deep waters in the Santos Basin.
While drilling the new well, located at a water depth of roughly 5,820 meters, the largest integrated energy firm in Brazil discovered excellent quality oil of 31º API.
The company has reached a depth of roughly 6.178 meters at the well, now at the drilling phase. Petrobras found an oil column of 352 meters in the reservoir and added that in order to evaluate the productivity of the reservoir, formation test will likely be conducted at the end of well drilling.
Nacional Petroleum, Natural Gas and Biofuels Agency (ANP) of Brazil has permitted the discovery evaluation plan of Block BM-S-8, the Carcará area.
Petrobras − the operator − has 66% ownership in the consortium working for the new well. The other companies holding interest are the integrated player Petrogal Brasil with 14%, the upstream firm Barra Energia do Brasil Petróleo e Gás with 10% and Queiroz Galvão Exploração e Produção S.A with another 10%.
Petrobras is the largest publicly traded Latin American oil company, which dominates Brazil’s oil and gas sector. The company produces most of Brazil’s crude oil and natural gas and accounts for almost the entire refining capacity of the country.
However, Petrobras’ debt levels is persistently been rising. At the end of the first quarter, the company’s net debt-to-capitalization ratio was approximately 52%. As such, leverage remains a key area of concern for the firm.
As a result, Petrobras currently carries a Zacks Rank #3 (Hold). However, there are some better-ranked players in the energy sector. Pembina Pipeline Corporation PBA, LRR Energy LP LRE and WPX Energy Inc. WPX, all sporting a Zacks Rank #1 (Strong Buy), are to name a few.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Be the first to comment