Valaris Ltd. has deployed its Valaris 144 jack-up rig to Angola for new drilling contracts. The initial offshore well is set to begin in early 2025 with a duration of 45 days, valued at $8.5 million. Additionally, a 13-well contract is planned, estimated to last two years and worth up to $156 million. Valaris currently holds a Zacks Rank of #5 (Strong Sell).
Valaris Ltd. has announced that its jack-up rig, Valaris 144, has arrived in Angola for a new drilling assignment following its previous project in Corpus Christi, Texas. The rig’s journey commenced in late January, marking a significant transition to potential drilling operations in the region.
In 2024, Valaris secured a contract with an undisclosed operator in Angola for drilling one well offshore, projected to commence in the first quarter of 2025. This contract is anticipated to last approximately 45 days, with an estimated value of nearly $8.5 million.
Additionally, the Valaris 144 has obtained a contract for 13 wells with the same operator, expected to span 730 to 770 days and slated to kick off in the second quarter of 2025. The value of this extended contract is projected to range from $149 million to $156 million.
As of now, Valaris Ltd. holds a Zacks Rank of 5 (Strong Sell) within the energy sector. It is noteworthy that Archrock Inc. currently holds a Zacks Rank of 1 (Strong Buy), while Matador Resources Corporation and NextDecade Corporation each have a rank of 2 (Buy). These companies showcase strong performance and operational efficiency within the energy sector.
Archrock specializes in midstream gas compression and provides contract compression services, ensuring stable revenue streams. Matador Resources is recognized for its sizeable exploration and production capabilities, consistently exceeding its production targets. NextDecade is an up-and-coming player in the LNG market, focusing on expanding liquefaction capacity to meet the surging global demand for natural gas, driven by the transition toward cleaner energy sources.
Valaris Ltd.’s Valaris 144 rig has successfully reached Angola to commence significant drilling operations. With a contract value of approximately $8.5 million for an initial well and a subsequent 13-well contract valued between $149 million and $156 million, Valaris is positioning itself strategically in the region. However, its current Zacks Rank suggests caution, particularly in comparison to higher-ranked companies in the energy sector, highlighting the competitive nature of the market.
Original Source: www.zacks.com
