Marathon Oil (MRO) Unlikely to Fast Track Gabon Discovery

August 19, 2013 10:20 AM EDT
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Price: $17.33 -0.63%

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    14 Buy, 19 Hold, 2 Sell

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    Up: 13 | Down: 22 | New: 54
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On Monday Marathon Oil Corporation (NYSE: MRO) announced that the pre-salt Diaman-1B exploration well offshore Gabon has encountered 160-180 net feet (50-55 meters) of hydrocarbon pay in the deepwater pre-salt play. Preliminary analysis suggests that the hydrocarbons are natural gas with condensate content, pending results of ongoing analyses of well data.

Commenting on developments, analyst Roger D. Read of Well Fargo said, "An exploration success in a new frontier is a good thing. However, since the discovery appears to be a combination of condensate/natural gas, it is unlikely to be developed on a fast track basis in our opinion. Thus we are not making any meaningful changes in our estimates for reserves/margins/cash flow/profitability at this time."

"MRO holds a 21.25% nonoperated interest in the Diaba License. Partners include TOTAL Gabon (operator, 42.5% interest) Cobalt International Energy, L.P. (21.25% interest), and Gabonese Republic (15% interest)."

Wells Fargo has an Outperform rating on Marathon Oil.

For an analyst ratings summary and ratings history on Marathon Oil (NYSE: MRO)click here. For more ratings news on Marathon Oil click here.

Shares of Marathon Oil closed at $34.26 yesterday.

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