The Italian oil & gas company Eni has successfully drilled and tested a well in the East Sepinggan block, offshore Kalimantan, Indonesia. The oil giant has been operating in Indonesia for almost 18 years now and has an overall wide portfolio of assets in exploration, production, and development. Based on data from Top Italian broker TradeFW, Eni’s latest success, and future plans indicate that Eni will be one of the hottest Eurozone stocks in 2019.
The offshore Indonesia discovery – a boost for the Eni stock
The discovery marks the company’s third consecutive successful find in the country. The well has been drilled to a depth of 3,400 m (11,155 ft) MD in 1,592 m (5,223 ft) of water depth and encountered 15 m (49 ft) of gas bearing net sands in two separate levels of Miocene Age. According to data recorded from the production test, in production configuration, the well can deliver 70 MMscf/d of gas and 1,000 b/d of associated condensates. Given the proximity of the discovery which is in line with the company’s near field exploration, the costs and time of execution will be substantially reduced.
Eni’s CEO, Claudio Descalzi, explained why this discovery is so important and how the strategies of the oil giant are paying off: “This new success further implements the Company’s growth strategy in the Pacific Basin where, in addition to its presence in Indonesia, Australia and China, Eni recently signed new exploration contracts in Vietnam, Myanmar, and China. Merakes finding is a significant one as it strengthens our position as an operator in Indonesia. Moreover thanks to its proximity to the Jangkrik field, which is currently under development, this new gas finding could supply in the future additional gas volumes to the Bontang LNG plant. This new achievement proves once more the effectiveness of Eni’s strategic approach to exploration, which is based on operating with elevated stakes in the exploration phase to better valorize exploration success.”
With great news, come great investment opportunities. Although the oil & gas industry has been a bit unattractive lately, Eni is a breath of fresh air and an opportunity that can’t be missed. It has a P/E ratio of 9, based on the last twelve months, meaning that at current prices, buyers pay €9 for every €1 in trailing yearly profits. The EPS growth last year was strong, and debt levels are reasonable. The latest discovery and the plans of expansion the company has planned for 2019 will bring a lot of excitement to Eni’s shareholders!
Is the Eni stock a worthy investment?
The year just started but Eni has already made announcements that make it a worthy investment. The company will expand its presence in the Middle East through various contracts. One of the most important agreements that might be extremely profitable for investors is the Memorandum of Understanding (MoU) with the National Oil and Gas Authority of the Kingdom of Bahrain (NOGA). This contract allows Eni to expand in the one Gulf country that is expected to hold immense offshore potential. The deal is part of the company’s strategy to diversify its exploration portfolio across basins with liquid hydrocarbon potential. Furthermore, last year, Eni began exploration activities in the Sultanate of Oman and made agreements with Abu Dhabi National Oil Company (ADNOC). The company is also present in other countries of the Middle East like Lebanon and Iraq.
There is no doubt that Eni is one of the Eurozone’s best stocks in 2019 and a great investment opportunity. However, the online stock broker you choose to trust with your investments plays a big part in the outcome of your trade, so make sure to give this step the proper attention it deserves. TradeFW.com is one of the leading stockbrokers in the industry and is a great example of what services a trustworthy broker should offer. TradeFW gives you the opportunity to trade the Eni stock in a safe, modern and professional environment. The firm is licensed and regulated; it covers you with negative balance protection, while also keeping your capital in a segregated account. Safety is extremely important, especially when you plan to make a long-term investment. To sum up, with a top stock like Eni and a top broker, you’re halfway there and your financial success is closer than you think!
■ Eni’s successful discovery offshore Indonesia
Disclosure: 'The above references an opinion and is for information purposes only. It is not intended to be investment advice. Seek a duly licensed professional for investment advice.'