Back to top

Image: Bigstock

Statoil's (STO) Drilling in Flemish Pass Basin Disappoints

Read MoreHide Full Article

Statoil ASA has agreed upon a two-well exploration drilling campaign along with partner, Husky Energy, in the Flemish Pass Basin offshore Newfoundland.

Located about 500 kilometers east of St. John’s, Newfoundland and Labrador, both wells were drilled safely and competently by the Seadrill West Aquarius in the Flemish Pass Basin. No hydrocarbons were discovered from the two wells located within tie-back area to Statoil’s 2013 Bay du Nord discovery.

The results were disappointing as the company had expected to add further optionality to the near-field area at Bay du Nord. Subsequently, Statoil now intends to assess the results prior to finalizing plans for further drilling in Bay du Nord.

Bay du Nord, including the Bay de Verde and Baccalieu discoveries announced in 2016, is estimated to hold 300 million barrels of recoverable oil. This was announced after Statoil’s 2014–2016 drilling campaign.

Statoil continues to appraise future drilling activities in other areas where the company holds acreage in the frontier Flemish Pass Basin. The company’s evaluation of the commercial potential of the Bay du Nord discovery is underway.

Shares of the company have lost 4.6% in the last three months compared with the Zacks categorized Oil & Gas – International Integrated industry’s decline of 5%.



Statoil is a Norway-based major international integrated oil and gas company. In recent times, the company has delivered strong exploration results, adding significantly to its resource base by making several high impact discoveries. The latest finds give the company access to new regions of Norway, Russia, Azerbaijan, Tanzania and Australia, which will ensure long-term growth.

Statoil currently has a Zacks Rank #5 (Strong Sell). Some better-ranked stocks in the same space include Delek US Holdings, Inc. (DK - Free Report) , Cheniere Energy Inc (LNG - Free Report) and Canadian Natural Resources Limited Ltd. (CNQ - Free Report) . All these stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Delek US Holdings delivered a positive earnings surprise of 148.48% in the preceding quarter. The company beat estimates in each of the trailing four quarters, with an average positive earnings surprise of 60.68%.

Cheniere Energy delivered a positive earnings surprise of 162.16% in the preceding quarter. The company beat estimates in one of the trailing three quarters with an average positive earnings surprise of 14%.

Canadian Natural Resources delivered a positive earnings surprise of 30.77% in the preceding quarter. It surpassed estimates in two of the trailing four quarters with an average negative earnings surprise of 275.46%.

More Stock News: 8 Companies Verge on Apple-Like Run

Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2017 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade which could in turn save $200 billion in U.S. healthcare costs.

A bonus Zacks Special Report names this breakthrough and the 8 best stocks to exploit it. Like Apple in 2007, these companies are already strong and coiling for potential mega-gains. Click to see them right now >>


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Delek US Holdings, Inc. (DK) - free report >>

Canadian Natural Resources Limited (CNQ) - free report >>

Cheniere Energy, Inc. (LNG) - free report >>

Published in