Eni SpA E has successfully spudded a new well in the Nooros East exploration prospect, which lies in the Abu Madi West license in the Nile Delta, Egypt.
The new well, namely Nidoco North 1X, is expected to start up by the end of Mar 2016. This will take the production capacity of the Nooros area to about 45,000 barrels of oil equivalent per day (boed). Interestingly, this highly prolific area commenced production in Sep 2015, just two months after the initial Nooros discovery,
The production capacity is estimated to exceed 60,000 boed by the middle of 2016, as new development wells are brought online. The produced gas and condensates will be transferred to the Abu Madi treatment plant, which is located around 25 kilometers from the discovery. Thereafter, it will be directed to the Egyptian network.
Similar to Nooros’ earlier discoveries, Nidoco North 1X well was drilled from onshore as a deviated well to the Nooros East field in the offshore shallow waters. The well tapped more than 43 meters of net gas and condensates bearing sandstone layers of Messinian age with excellent petrophysical properties.
Apart from field development, Eni will carry on its exploration activities in the license area. Noticeable additional potential has been recognized in the license area that will be verified through the drilling of two other exploration wells. Eni, through its subsidiary, IEOC, holds 75% of the concession of Abu Madi West, while BP holds the remaining 25%.
Eni also concluded the drilling of the Zohr 2X well – the first appraisal well of Zohr discovery – in the Shorouk block. Located 1.5 kilometers southeast from Zohr 1X and slightly below it, the Shorouk block lies on the edge of Zohr, in a water depth of 4800 feet. Eni, through IEOC, has a holding of 100% in the Shorouk block.
The company drilled Zohr 2X well up to 13684 feet (4171 meters) and tapped 1614 feet (455 meters) of continuous hydrocarbon column in a carbonate sequence with excellent reservoir characteristics (305 meters net pay).
Per the appraisal plan, three more wells need to be drilled to fully demarcate the field, which holds approximately 30 trillion cubic feet of lean gas in place (5.5 billion of barrels of oil equivalent in place).
Recently, Eni announced that it, together with the Egyptian authorities, has completed the approval process for the development of Zohr field.
Petrobel, which is a joint venture between IEOC and the State partner Egyptian General Petroleum Corporation (EGPC), is in charge of the operations in both licenses.
Eni carries a Zacks Rank #5 (Strong Sell). Some better-ranked players from the energy sector are SolarEdge Technologies, Inc. SEDG, Braskem S.A. BAK and Enviva Partners, LP EVA. Each of these stocks sports a Zacks Rank #1 (Strong Buy).
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