Integrated energy company Hess Corporation (HES - Analyst Report) announced the discovery of oil at the Paradise-1 deepwater exploration well offshore Ghana. In this regard, the company has filed a Notice of Discovery with the Minister for Energy of the country.
The well, which was drilled to a total depth of 16,436 feet in water depth of 6,038 feet, hit oil and gas condensates with an estimated net pay of 490 feet over three separate intervals. Hess acts as the operator of the license with 90% working interest, while Ghana National Petroleum Corp. (“GNPC”), the West African state-run oil company, controls the remaining 10%.
Hess plans to undertake further evaluation and appraisal activities in the site, known as Tano Cape Three Points, with support from GNPC and the government of Ghana.
New York City-based Hess along with its subsidiaries is engaged in the production, development, purchase, transportation and sale of crude oil and natural gas. As of year-end 2010, the company’s proved reserves tally stood at 1.54 billion oil-equivalent barrels and replaced 176% of its production, resulting in a reserve life of 9.9 years.
We believe that Hess exhibits a competitive edge over its peers, thanks to improving fundamentals, commodity price leverage and exposure to areas with high resource potential (such as Brazil, Ghana, Libya and offshore Australia). We continue to see an upstream momentum given the company's large inventory of exploration and development projects.
However, we maintain our long-term Neutral rating on the stock considering volatile oil and gas fundamentals, operational disturbances and international business risks. Hess, which competes with peers such as ConocoPhillips (COP - Analyst Report) and Exxon Mobil Corporation (XOM - Analyst Report), currently retains a Zacks #3 Rank (short-term Hold rating)
By: Zacks Equity Research
No comments:
Post a Comment