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Equinor (EQNR) Strikes Another Oil Discovery Near Troll Field
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Equinor ASA (EQNR - Free Report) has discovered oil and gas near the Troll field in the North Sea. This is the company's eighth discovery in the region since 2019. The estimated volume is in the range of 24-84 million barrels of oil equivalent (BOE), with somewhat more oil than gas. The new well, Heisenberg, was dug by the Deepsea Stavanger drilling rig. Equinor is the operator of this discovery and DNO is an associate.
The discovery is considered commercially viable, partially because it can use the existing infrastructure related to the Troll B platform. The parties are thinking of drilling an appraisal well in 2024, since a more accurate assessment of its size is necessary to determine the volumes that can be recovered.
According to Geir Sortveit, senior vice president for exploration and production west at Equinor, discoveries in eight out of nine exploration wells at Troll have helped the company in achieving a 90% success rate.
He added that the company plans to further explore the region, while finding potential development solutions for its recent discoveries. Sortveit also said that the company has good infrastructure in the area and can quickly send competitive barrels from here to the market at low cost and with minimal CO2 emissions.
Five of the eight discoveries were made in licenses awarded through APA rounds. It has just been over a month since Equinor, together with its partners, has made the Røver South discovery in the same area. Two weeks ago, the company boosted its ownership holdings in four of the regional discoveries through acquisitions.
Going forward, EQNR plans to drill 20 to 30 exploratory wells every year. Exploration is key to preserving the Norwegian continental shelf's cash flow and providing the requisite gas volumes for the development of a blue hydrogen value chain. In order to maximize returns on its 50 years of investment, EQNR will conduct volumetric exploration in mature regions where new finds can be tied into the existing infrastructure.
Some better-ranked stocks for investors interested in the energy sector are CVR Energy (CVI - Free Report) and Valero Energy Corporation (VLO - Free Report) , each sporting a Zacks Rank #1, and Murphy USA Inc. (MUSA - Free Report) ,carrying a Zacks Rank #2 (Buy).
CVR Energy, a diversified holding company with its main office in Sugar Land, TX, is an independent refiner and marketer of high value transportation fuels. Over the past seven days, CVI has seen an upward revision in earnings estimates for 2023 and 2024.
Valero Energy is a global manufacturer and marketer of transportation fuels and petrochemical products.With 15 refineries spread across Canada, the United States and the United Kingdom, it has a daily refining capacity of 3.1 million barrels. Over the past 30 days, VLO has seen an upward revision in earnings estimates for 2023 and 2024.
Murphy USA operates stations close to Walmart supercenters and sells low-cost, high-volume fuel. This helps the company to get a lot more business than its competitors. Another significant competitive advantage for the firm is its access to product distribution centers and pipelines, which helps control costs in the intensely competitive retail sector. Over the past 30 days, MUSA has witnessed an upward revision in earnings estimates for 2024.
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Equinor (EQNR) Strikes Another Oil Discovery Near Troll Field
Equinor ASA (EQNR - Free Report) has discovered oil and gas near the Troll field in the North Sea. This is the company's eighth discovery in the region since 2019. The estimated volume is in the range of 24-84 million barrels of oil equivalent (BOE), with somewhat more oil than gas. The new well, Heisenberg, was dug by the Deepsea Stavanger drilling rig. Equinor is the operator of this discovery and DNO is an associate.
The discovery is considered commercially viable, partially because it can use the existing infrastructure related to the Troll B platform. The parties are thinking of drilling an appraisal well in 2024, since a more accurate assessment of its size is necessary to determine the volumes that can be recovered.
According to Geir Sortveit, senior vice president for exploration and production west at Equinor, discoveries in eight out of nine exploration wells at Troll have helped the company in achieving a 90% success rate.
He added that the company plans to further explore the region, while finding potential development solutions for its recent discoveries. Sortveit also said that the company has good infrastructure in the area and can quickly send competitive barrels from here to the market at low cost and with minimal CO2 emissions.
Five of the eight discoveries were made in licenses awarded through APA rounds. It has just been over a month since Equinor, together with its partners, has made the Røver South discovery in the same area. Two weeks ago, the company boosted its ownership holdings in four of the regional discoveries through acquisitions.
Going forward, EQNR plans to drill 20 to 30 exploratory wells every year. Exploration is key to preserving the Norwegian continental shelf's cash flow and providing the requisite gas volumes for the development of a blue hydrogen value chain. In order to maximize returns on its 50 years of investment, EQNR will conduct volumetric exploration in mature regions where new finds can be tied into the existing infrastructure.
Zacks Rank & Key Picks
Currently, Equinor ASA carries a Zack Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Some better-ranked stocks for investors interested in the energy sector are CVR Energy (CVI - Free Report) and Valero Energy Corporation (VLO - Free Report) , each sporting a Zacks Rank #1, and Murphy USA Inc. (MUSA - Free Report) ,carrying a Zacks Rank #2 (Buy).
CVR Energy, a diversified holding company with its main office in Sugar Land, TX, is an independent refiner and marketer of high value transportation fuels. Over the past seven days, CVI has seen an upward revision in earnings estimates for 2023 and 2024.
Valero Energy is a global manufacturer and marketer of transportation fuels and petrochemical products.With 15 refineries spread across Canada, the United States and the United Kingdom, it has a daily refining capacity of 3.1 million barrels. Over the past 30 days, VLO has seen an upward revision in earnings estimates for 2023 and 2024.
Murphy USA operates stations close to Walmart supercenters and sells low-cost, high-volume fuel. This helps the company to get a lot more business than its competitors. Another significant competitive advantage for the firm is its access to product distribution centers and pipelines, which helps control costs in the intensely competitive retail sector. Over the past 30 days, MUSA has witnessed an upward revision in earnings estimates for 2024.