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Statoil (STO) Discovers Small Gas Deposit in Blamann Well

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Statoil ASA along with partners Eni SpA (E - Free Report) and Petoro has discovered a small gas deposit in the Blamann well.

The discovery, estimated to hold recoverable volumes of 1.5–3 billion standard cubic meters (BCM) which is about 10-20 million barrels of oil equivalent (BOE), lies between the Snøhvit and Goliat fields in the Barents Sea.

Drilled in license PL 849, the well received Norway’s Awards in Predefined Areas (APA) licensing round in 2016. Gas was found in a 23-meter column in the Stø formation, while no oil volumes were encountered.

Located in the Hammerfest basin, the discovery lies about 21 kilometers southeast of the Snøhvit field.

This represents the second discovery in Statoil’s 2017 Barents Sea exploration campaign, subsequent to the Kayak oil discovery announced on Jul 3.

Drilled by the “Songa Enabler” semisubmersible drilling rig, the well will be transferred to the Hoop area to drill the Gemini North prospect in license PL855, located northeast of the Wisting discovery.

Being the operator of Blåmann license, the company holds 50%. Other partners include Eni and Petoro holding 30% and 20%, respectively.

Statoil is also the operator of Gemini North (PL855) with an interest of 55%. Other partners include OMV and Petoro holding 25% and 20%, respectively.

Shares of the company have gained 4.9% in the last three months compared with the Zacks categorized Oil & Gas – International Integrated industry’s growth of 0.5%.

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 Statoil 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 are Boardwalk Pipeline Partners, LP (BWP - Free Report) and Canadian Natural Resources Limited Ltd. (CNQ - Free Report) . Both these stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Boardwalk Pipeline Partners delivered a positive earnings surprise of 11.90% in the preceding quarter. The company beat estimates in each of the trailing four quarters, with an average positive earnings surprise of 17.31%.

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%.

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