Norwegian energy company
) has proven significant additional resources within the Shetland
Group and the Lista Formation at the Gullfaks license in the
Norwegian sector of the North Sea.
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Though the presence of hydrocarbons in the Shetland Group/Lista
Formation was known for a long time, the poor quality of
reservoirs hindered development. However, a well test over the
formations in the 34/10-A-8 production well, on the Gullfaks A
platform, had shown good flow rates. The well is currently
yielding at a rate of 7,500 barrels per day and has generated
over 1 million barrels since Dec 2012.
Initial estimates based on analysis, modeling, formation testing
and sampling in the applicable interval indicate that the find
holds recoverable 40-150 million barrels of oil equivalents. The
resource estimate derived from these calculations has some
uncertainty involved as its model indicates further upside
Gullfaks is located in the Tampen area in the northern North Sea
and was commissioned on Dec 22, 1986. The field is being
developed through three permanent installations, which have
produced over 2.4 billion barrels of oil and over 56 billion
cubic meters of gas.
Statoil, the operator, of the Gullfaks Field holds a 70%
interest, while partner Petoro has the remaining 30% stake.
The latest well test flow at the Gullfaks license is in sync with
Statoil's strategy of reviving the Norewegian continental shelf.
The Shetland Group and the Lista formation are younger and
considerably shallower deposits with different properties
vis-a-vis the deposits of the Brent Group, where the main
reservoirs of Gullfaks are situated.
The discovery will offer new capacity that can provide high-value
production in the short term. It also augurs well for the
prospects of the field and its installations.
Statoil holds a Zacks Rank #3 (short-term Hold rating). However,
Zacks Ranked #1
Range Resources Corporation
EPL Oil & Gas, Inc
Stone Energy Corp
) are expected to outperform the market over the next few