Back to top

Analyst Blog

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at support@zacks.com or call 800-767-3771 ext.  9339.

Norwegian giant Statoil ASA (STO - Analyst Report) hit upon a small oil find while drilling a well on the Svale Nord prospect in the Norwegian Sea.

The mid-water semi submersible rig Songa Trym was used to drill the exploration well 6608/10-15 in production license (PL) 128, about nine kilometers north-east of the Norne field.

The primary exploration target of the well was to confirm oil in Early Jurassic reservoir rocks. The secondary target was to establish oil in Middle Jurassic rocks.

The probe proved a 45 meter oil column in the Are formation and a 45 meter oil column in the secondary Melke formation. Reservoir thickness and properties in both targets met expectations. Well 6608/10-15 was drilled in water depth of 375 meters to reach a total vertical depth of 2,005 meters subsea.

Per the preliminary projections, the discovery is estimated to hold recoverable resources between 6 million to 19 million barrels of oil.

Formation testing on the well is still pending, however, data acquisition and sampling have been performed. The tie-in of the discovery to the Norne field is still under consideration, as the find could further lead to an extension of the Norne field production life.

The latest discovery follows closely after the Smorbukk North find last month and represents the second discovery in the Norwegian Sea in three weeks. These discoveries signify the promising upside still present in the Norwegian Sea. Moreover, the timely completion of field exploration contributes to the resources of the company.

Statoil, the operator of PL 128, holds an interest of 63.95%. The other partners include Italy’s Eni SpA (E - Analyst Report) and Petoro AS, with a stake of 11.5% and 24.55%, respectively.

Statoil carries a Zacks Rank #3 (Hold). However, Zacks Ranked #1 (Strong Buy) stocks – Range Resources Corp. (RRC - Analyst Report) and Whiting Petroleum Corp. (WLL - Snapshot Report) – appear attractive for 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

Learn more

Start for as little as $4.50 per trade.

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
DIXIE GRP IN DXYN 15.84 +7.90%
BOFI HLDG IN BOFI 85.30 +4.97%
RAMBUS INC RMBS 12.31 +4.41%
VIPSHOP HOLD VIPS 148.73 +4.35%
NETFLIX INC NFLX 345.74 +4.32%