) has inked an agreement with
), relating to farming-in 30% equity share in four exploration
licenses, offshore South Australia. The deal amount was kept
BP PLC (BP): Free Stock Analysis Report
DAWSON GEOPHYS (DWSN): Free Stock Analysis
SM ENERGY CO (SM): Free Stock Analysis Report
STATOIL ASA-ADR (STO): Free Stock Analysis
To read this article on Zacks.com click here.
Located in the frontier Ceduna Sub Basin within the Great
Australian Bight, off the coast of South Australia - the four
licenses EPP 37, 38, 39 and 40 - span an area of over 24,000
With 3D seismic survey complete in 12,000 square kilometers in
the license area, BP is currently finalizing the processing of
this data. The subsequent steps involve maturation of drillable
prospects and continued environmental studies.
The work agenda comprises drilling of four wells within the
largely unproven license area. BP will retain the operatorship of
the exploration licenses, even after the farm-out.
The agreement has provided Statoil access to licenses, which are
believed to hold immense potential for a major discovery and are
still under explored. The agreement is in sync with the company's
strategy of aligning its long-term growth objective by gaining
early access to new and promising basin, thereby positioning it
for high impact exploration.
Per Statoil, high-impact discoveries are defined as those having
a total yield of over 250 million barrels of oil equivalent (boe)
or 100 million boe net to the company.
Statoil has been present in Australia since it farmed-in into
Petrofrontier's four existing and two outstanding onshore
exploration permits in the South Georgina Basin of the Northern
Territories through a joint venture project.
Statoil holds a Zacks Rank #3 (Hold). However, there are other
Zacks Ranked #1 (Strong Buy) stocks -
Dawson Geophysical Company
SM Energy Company
) - in the sector that appear rewarding.