An affiliate of Canadian energy explorer Talisman Energy Inc. (TLM) and the Columbian state-owned company Ecopetrol S.A. (EC) have discovered hydrocarbons in block CPO-9, Columbia. This is the second find in the block for the parties. Shares of Talisman gained over 3% following this announcement.
The discovery has been made through the exploratory well Nueva Esperanza-1. The well attained a depth of 12,056 feet on Sep 26, after being spudded on Jul 18. The company announced that the during an initial testing for eight days, the well yielded 910 barrels of daily flow rate, with 8° API.
Both the parties plan to carry out long-term tests on the exploratory well. Drilling on Nueva Esperanza-2, the first of the two appraisal wells that have been approved, has already begun on Nov 16.
In 2010, Talisman Energy and Ecopetrol had made the first discovery in the block. The Akacias Field has been declared commercially feasible by the parties in December last year and it awaits approval for development.
Talisman Energy holds a 45% stake in the block CPO-9 whereas Ecopetrol is the majority stake owner as well as the operator with the remaining 55% ownership.
Calgary, Alberta-based Talisman Energy is an independent oil and gas exploration and production company, with operations in North America (primarily Canada) and several international regions.
On Nov 4, Talisman Energy reported third-quarter 2014 adjusted earnings of approximately 5 cents per share, which missed the Zacks Consensus Estimate by a penny. Lower volumes and realizations affected the results.
Talisman Energy currently carries a Zacks Rank #3 (Hold).
Meanwhile, one can consider better-ranked players from the broader energy sector like Cheniere Energy Partners LP. (CQP) and Murphy USA Inc. (MUSA). Both these stocks sport a Zacks Rank #1 (Strong Buy).
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
To read this article on Zacks.com click here.
Get all Zacks Research Reports and be alerted to fast-breaking buy and sell opportunities every trading day.
Be the first to comment