It was recently revealed that EOG Resources, Inc. (NYSE:EOG) has won a new onshore oil exploration concession in the United Arab Emirates. Let us shed some light on this development.
EOG Resources, Inc. (NYSE:EOG) is one of the largest crude oil and natural gas exploration and production companies in the United States, with proved reserves in the US and Trinidad.
It was recently announced that EOG Resources, Inc. (NYSE:EOG) has been awarded a new onshore oil exploration concession in the UAE by Abu Dhabi’s Supreme Council for Financial and Economic Affairs. The US shale giant will evaluate 900,000 acres in a hydrocarbon-rich basin in Abu Dhabi’s Al Dhafra region under the agreement, while coordinating with the Abu Dhabi National Oil Company. EOG holds 100% equity and operatorship and, after a 3-year appraisal phase, may also enter a production concession with the UAE if it finds commercial hydrocarbons. ADNOC will have an option to participate in that production agreement. The American company expects to begin drilling in the second half of 2025, with no change to its capital plan for the year.
The development was announced during President Trump’s recent visit to the United Arab Emirates, where multiple strategic agreements were signed, potentially enabling $60 billion of American investments in UAE energy projects.
Ezra Y. Yacob, Chairman and Chief Executive Officer of EOG Resources, Inc. (NYSE:EOG), stated:
“We are excited for the opportunity to evaluate this hydrocarbon rich basin for potential horizontal development. We look forward to working alongside ADNOC to expand Abu Dhabi’s resource potential.”
While we acknowledge the potential of EOG to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than EOG and that has 100x upside potential, check out our report about this cheapest AI stock.
READ NEXT: 10 Cheap Energy Stocks to Buy Now and 10 Most Undervalued Energy Stocks According to Hedge Funds.
Disclosure: None.
