Eni SpA E recently announced that it has resumed exploration activities onshore Tunisia in the Sahara desert, about 700 kilometers south of the African country.
Located in the Makhrouga-Laarich-Debbech license, operations on the discovery well – Laarich East-1 – have now been concluded by Eni. The Italian company owns a 50% stake in Laarich East-1, while the remaining 50% is held by the Tunisian state company, ETAP.
Laarich East-1 was spud to the final depth of 4,111 meters, where it encountered hydrocarbons in sandstone layers of Silurian and Ordovician age. Production tests indicate that the well has a delivery capacity of around 2,000 barrels of oil per day. This validates the potential of the concession as revealed by the latest 3D geophysical survey on the permit.
The drilling operations, which commenced in June, have progressed and the well has already been linked to production. Currently, exploration activities are continuing in Tunisia with the drilling of further prospects, which have already been identified by the 3D Seismic.
The drilling of Laarich East-1 is part of Eni’s near field strategy to cope with the low oil price environment. It aims to carry out exploration activities in the vicinity of existing infrastructures with available spare capacity.
Eni’s boasts a strong presence in Tunisia since the early 1960s. The company has been involved in exploration and production activities in the region after it discovered the huge El Borma oil field. Currently, Eni produces 11,000 barels of oil equivalent per day in the country.
Eni currently carries a Zacks Rank #4 (Sell). Some better-ranked players from the energy sector are Enbridge Inc ENB, NGL Energy Partners LP NGL and Murphy USA Inc. MUSA. All these stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
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