Italian oil and gas group Eni SpA (E) has augmented its resource base in Area 4, offshore Mozambique, at the Mamba North East 1 exploration prospect with a giant new natural gas find. The discovery widens the company’s Mamba base by at least 10 trillion cubic feet (Tcf).
Located 50 kilometers off the Capo Delgado coast in a water depth of 1,848 meters, Mamba North East 1 was drilled to a total depth of 4,560 meters. The drilling site lies about 15 kilometers northeast of the initial Mamba South 1 discovery and 12 kilometers southwest of the Mamba North 1 giant discovery.
The discovery well struck a total of 240 meters of gas pay in multiple high-quality Oligocene and Eocene sands. According to Eni, the find confirmed reservoir continuity and pressure communication with the earlier Mamba South 1 and Mamba North 1 wells.
The outcome of the exploration well, drilled in the eastern part of Area 4, holds special significance as it increases the output of the area by at least 10 Tcf of which around 80% is entirely enclosed there. The latest find is expected to boost the prospects of the Mamba complex in Area 4 at around 40 Tcf of gas in place.
Eni retains the operatorship of Area 4 with a participating interest of 70%. The other participants are Galp Energia, KOGAS and state owned ENH, each holding a 10% interest.
We belief Eni’s constant efforts to expand its upstream operations and such endeavors in Iraq, Angola and Russia will go a long way to generate profitable growth in future. Moreover, project start-ups, inputs from big projects including Junin 5 and Perla in Venezuela, potential exploration scenario in Togo, Ghana, Democratic Republic of Congo and Mozambique, as well as the strategic position in non-conventional gas are expected to augment volumes going forward.
Eni added that it intends to drill four more wells in the vicinity of the latest find in 2012 to determine the complete scale and potential of the Mamba complex. The Rome-based energy explorer is reported to be in the lookout for farm-in partners for further development of Area 4 to help it bear the significant associated investments. BP Plc (BP), Royal Dutch Shell plc (RDS.A) and Total S.A. (TOT) are said to be among the firms that are interested to take part in the venture.
Eni holds a Zacks #3 Rank, which translates into a Hold rating for a period of one to three months. For the long term, we remain Neutral on the company.
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