EniSpA E has made a massive gas discovery in the deep waters of Egypt at its Zohr prospect.
Situated in the Shorouk Block in a water depth of 4,757 feet (1,450 meters) in the Egyptian side of the Mediterranean Sea, the discovery well – Zohr 1X NFW – was received by the company following a competitive international . The deal was inked between the Egyptian Ministry of Petroleum and the Egyptian Natural Gas Holding Company (EGAS).
Per the available well and seismic information, the discovery is estimated to hold approximately 30 trillion cubic feet of lean gas in place (5.5 billion barrels of oil equivalent in place). The find spans an area of about 100 square kilometers. Zohr is the largest gas discovery so far in both Egypt and the Mediterranean Sea. The field is likely to become one of the largest natural-gas finds in the world. This success of the exploration will contribute immensely in fulfilling Egypt’s natural gas demand for several years to come.
Eni intends to appraise the field immediately to speed up the development of the discovery using prevailing offshore and onshore infrastructures.
Drilled to a total depth of about 13,553 feet (4,131 meters), Zohr 1X NFW, struck 2,067 feet (630 meters) of hydrocarbon column in a carbonate sequence of Miocene age with exceptional reservoir characteristics (400 meters plus of net pay). A deeper Cretaceous upside also forms a portion of the Zohr field, which will be targeted in the future with a dedicated well.
The latest discovery is anticipated to change the energy scenario in Egypt. Eni has discovered 10 billion barrels of resources in the last seven years and 300 million in the first half of 2015.
Eni carries a Zacks Rank #4 (Sell). Some better-ranked stocks from the same space are Alon USA Partners, LP ALDW, BraskemS.A. BAK and Mitcham Industries Inc. MIND. All these stocks sport a Zacks Rank #1 (Strong Buy).
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