Norwegian oil and gas company
) has made a major gas discovery − Tangawizi-1 − in Block 2
offshore Tanzania. This represents the company's third find in
the region within a year.
Statoil discovered 4-6 trillion cubic feet (Tcf) of natural gas
at its Tangawizi-1 wildcat well in Block 2 off Tanzania, where it
is partnered by the U.S. energy behemoth
). Located 10 kilometers from the Zafarani and Lavani
discoveries, Tangawizi-1 was drilled with the Ocean Rig Poseidon
in a water depth of 2,300 meters. With this discovery, the
block's total in-place gas volumes are now in the 15 to 17 Tcf
range, while recoverable volumes are around 10-13 Tcf.
The latest find also represents the fourth in Block 2 in a year.
The block is estimated to hold above 250 million barrels of oil
equivalent or 100 million barrels net to Statoil that qualifies
the high-impact stature. Statoil operates Block 2 with a 65%
stake, and ExxonMobil holds the remaining 35%.
The Norwegian company and ExxonMobil are now looking for
additional prospects in Block 2. The companies have recently
obtained 3D seismic data of the block that was previously covered
by a 2D shoot.
Over the last 15 months, Statoil has completed five wells in
Block 2 and remains hopeful for more in the near future.
Statoil's existence in Tanzania dates back to 2007, when it
received the license for Block 2.
Discovery forms an integral part of growth for Statoil. Further,
these discoveries confirm Statoil's advantageous position in the
world's fastest growing gas hub of East Africa. The latest
discovery confirms that Statoil's exploration strategy of
focusing on high-impact prospects is paying off. Last year,
Statoil delivered strong exploration results, adding
significantly to its resource base by making several high impact
discoveries, since the last 2 years.
Statoil holds a Zacks Rank #2 (short-term Buy rating). In the
energy sector, companies like
) with a Zacks Rank #2 (Buy) also appear promising.
STATOIL ASA-ADR (STO): Free Stock Analysis
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