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Thursday, March 23, 2017 4:04:29 PM
Eni (E +1%) says it discovered “meaningful” reserves of oil off the coast of Mexico after drilling the first well by an international oil company since Mexico opened up its sector to private investment under a 2013 reform.
Eni won the block in September 2015 and knew oil was there because Mexican national oil company Pemex already had explored the area; the significance of Eni’s announcement is that it points to the presence of oil at deeper levels, in previously unknown areas of the block.
Eni says its Amoco-2 well had confirmed the presence of light oil and that “the newly discovered deeper sandstones contain high-quality light oil. Reserves are still being assessed, but the well indicates a meaningful upside to the original estimates."
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