Back to top

Analyst Blog

Norwegian energy company Statoil ASA (STO - Analyst Report) has formally taken over all the operations in the eastern part of its Eagle Ford asset in Texas.

Under the partnership deal signed in 2010, Talisman Energy Inc. (TLM - Analyst Report) – a 50:50 joint venture partner of Statoil –initially held the operatorship of the entire acreage, while Statoil was to attain operatorship for half of the acreage at a later stage.

Statoil has taken charge in parts covering four counties – Live Oak, Karnes, DeWitt and Bee – in south-central Texas. Talisman will retain operational responsibility for the western acreage, which mainly spreads over the counties McMullen, La Salle and Dimmit. The joint ownership for the total acreage will not be affected by the distribution of operational responsibilities.

The Norwegian giant will also be accountable for producing wells and other facilities, pipelines and infrastructure as well as a field office in Karnes county. Statoil has already assumed operations on three drilling rigs in Eagle Ford.

The transition process has given Statoil an operational role in all of its three U.S. onshore shale assets – Bakken, Marcellus and Eagle Ford.

With a net acreage of around 73,000 in the Eagle Ford shale, Statoil generates 20,200 barrels of oil equivalents per day (Boe/d) from about 300 producing wells. As part of a global output target of attaining 2.5 million Boe/d, Statoil aims to enhance its North American yield to 500,000 Boe/d by 2020.

Statoil is a Norway-based major international integrated oil and gas company. Though the company has operations in all major hydrocarbon-producing regions of the world, it has an upstream focus on the Norwegian Continental Shelf.

Statoil carries a Zacks Rank #4 (Sell). However, Zacks Ranked #1 (Strong Buy) stocks – PetroQuest Enerrgy Inc. (PQ - Snapshot Report) and Hornbech Offshore Services, Inc. (HOS - Snapshot Report) – are expected to perform impressively over the short term.
 

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
QIHOO 360 T… QIHU 94.46 +4.31%
QIWI PLC AD… QIWI 38.87 +3.43%
E COMMERCE… DANG 13.10 +3.23%
ACTELION LT… ALIOF 124.80 +2.97%
CLAYTON WIL… CWEI 138.10 +2.91%