Eni SpA E inked two new concession agreements for the blocks, North El Hammad and North Ras El Esh, as a result of the EGAS 2015 international bid round. We expect these developments to result in stock price appreciation. Over the last one year, the stock has increased 9.6%, while the Zacks categorized sub industry Oil & Gas- International Integrated Market has gained 20%.
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Located in the shallow waters of Egyptian Mediterranean Sea, the twin blocks closely follow on the heels of the recently awarded blocks of Southwest Meleiha (in the Western Desert), Shorouk, Karawan and North Leil (in the deep waters of the Egyptian Mediterranean).
The block North El Hammad spans across an acreage of 1,927 square kilometers and is located to the west of the Abu Madi West and Baltim-Baltim South development areas, where Eni recently made the major discoveries of Nooros and Baltim South West. Nooros was brought online in Aug 2015. Eni, the operator, of the North El Hammad block has equity of 37.5%. Other partners in the block are BP plc BP and Total SA TOT holding 37.5% and 25%, respectively.
The block North Ras El Esh spans across an acreage of 1,389 square kilometers and is located southwest of the development areas of Temsah and Port Fouad. Eni has a stake of 50% in the block, while the remaining is held by BP, the operator of the block.
These awards strengthen Eni’s portfolio and position in Egypt. Moreover, it endorses the company’s commitment to follow new exploration prospects subsequent to the recent and important successes of Nooros, Zohr and Baltim South West, made in 2015 and in 2016.
Eni’s operation in Egypt, where it operates through its subsidiary IEOC, dates back to 1954. The company is the chief producer in the country. At year-end 2016, it had an equity of about 224,000 barrels of oil equivalent per day.
Eni currently has a Zacks Rank #4 (Sell). Another better-ranked player in the same sector includes Suncor Energy, Inc. SU, sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Suncor Energy posted a positive earnings surprise of 300.00% in the preceding quarter. It reported an average earnings surprise of 40.55% for the four trailing quarters.
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