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A subsidiary of Royal Dutch Shell (RDS.A) recently made a major oil discovery at the Blacktip North prospect in the Alaminos Canyon block 336 in the deep-water U.S. Gulf of Mexico (GoM). At multiple stages, the Blacktip North Well encountered more than 300 feet (91 metres) of net oil pay and an assessment is underway to further determine development options.
Blacktip North is run by Shell (89.49%) and co-owned by Repsol (10.51%). It is located about 30 miles northeast of the Whale discovery, 4.5 miles northeast of the recently reviewed Blacktip discovery and 42 miles from the Perdido host. The discovery well was drilled at a water-depth of 8,443 meters by Transocean’s ultra-deepwater drillship Deepwater Poseidon.
Shell's Deepwater executive vice president Paul Goodfellow believes that the Blacktip North potential is the most recent example of fresh resources being discovered in Shell's lucrative corridors. The Perdido Corridor, for example, is at the centre of value creation in the Gulf of Mexico and it represents an opportunity to utilize RDS.A's existing infrastructure to unlock the full value potential of its finds.
Earlier in May, Shell affiliate made a major oil exploration at the Leopard prospect in the Alaminos Canyon block 691 in the deep-water U.S. Gulf of Mexico (GoM). At multiple stages, the Leopard Well encountered more than 600 feet (183 metres) of net oil pay.
RDS.A belongs to a global group of energy and petrochemical companies. It is involved in all phases of the petroleum industry right from exploration to final processing and delivery. Shell recently released first-quarter 2021 earnings results wherein the bottom line came ahead of the Zacks Consensus Estimate by 3.8%.
Zacks Rank & Key Picks
Shell currently has a Zack Rank #3 (Hold). Investors interested in the energy sector might look at the following stocks worth considering with a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Occidental Petroleum Corporation OXY is an integrated oil and gas company with significant exploration and production exposure. OXY is also a producer of various basic chemicals, petrochemicals, polymers and specialty chemicals. As of 2020 end, OXY's preliminary worldwide proved reserves totaled 2.91 billion BOE compared with 3.9 billion BOE at the end of 2019.
In the past year, shares of Occidental Petroleum have surged 99% compared with the industry's growth of 96.6%. OXY's 2021 earnings are expected to soar 151.4% from the year-ago reported figure. OXY has also witnessed eight northward estimate revisions in the past 60 days. In the third quarter, OXY achieved its divestiture target of $10 billion by inking a deal to sell off its interest in two offshore Ghana assets for $750 million.