Eni (E) Makes Oil Discovery at Yatzil-1 Well Offshore Mexico
Eni SpA E made an oil discovery on the Yatzil exploration prospect in Block 7 in the Sureste Basin off Mexico’s coast.
The Yatzil exploration prospect is situated in the mid-deep water of the Cuenca Salina in the Sureste Basin. Eni operates Block 7 with a 45% interest, while Capricorn and Citla Energy own 30% and 25% interest, respectively.
Using the Valaris DPS5 semisub rig, the Yatzil-1 well was drilled in 284 meters of water to a total depth of 2,441 meters. The Yatzil-1 well encountered in excess of 40 meters of net pay sands with good quality oil in the Upper Miocene sequences, with excellent petrophysical properties.
Yatzil-1 is Eni’s eighth successful well drilled in the basin and the second commitment well of Block 7. The latest discovery is located 25-30 kilometers away from other discoveries. According to preliminary estimates, the latest discovery is estimated to hold 200 million barrels of oil.
Yatzil-1 is not the first discovery of Eni in the Sureste Basin. In 2020, Eni announced a discovery in the Sureste Basin, saying it could contain 200-300 million barrels of crude oil. The discovery was made in the Eni-operated Block 10, wherein the company holds the majority stake.
Eni has been contributing to Mexico’s growth since 2006. The company holds rights in eight exploration and production blocks, located in the Sureste Basin in the Gulf of Mexico.
Mexico is crucial to Eni’s future organic growth strategy. The latest discovery confirms the significance of the company’s Mexico asset portfolio, contributing to the potential synergic cluster development of several prospects in the area.
Shares of Eni have outperformed the industry in the past six months. The stock has gained 17.3% compared with the industry’s 5.2% growth.
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Zacks Rank & Key Picks
Eni currently carries a Zack Rank #3 (Hold).
Investors interested in the energy sector might look at the following companies that presently flaunt a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
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