Norwegian oil giant
) has found a large deposit of light, high-quality oil in the
Flemish Pass Basin, offshore Newfoundland.
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The oil was discovered in the Harpoon prospect in EL 1112. The
field is situated about 500 kilometers north-east of St. John's,
the capital of the Canadian province of Newfoundland and
Labrador. The resource potential of the prospect is yet to be
The semi-submersible rig West Aquarius was used to drill the
Harpoon discovery to a water depth of about 1,100 meters. Statoil
is the operator of Harpoon, with 65% interest, while its partner
Husky Energy holds the remaining 35%.
Statoil encountered oil at Mizzen, 10 kilometers from the Harpoon
well that produced positive results in 2009. The Mizzen discovery
is estimated to hold recoverable reserves in the range of 100-200
million barrels of oil.
Currently, Statoil is drilling the Federation prospect in the
Jeanne d'Arc Basin offshore eastern Canada. As part of its
planned three-well exploration program offshore Newfoundland for
this year, the company will then return to Flemish Pass Basin to
drill the Bay du Nord prospect, which is located south-west of
the Harpoon and Mizzen discoveries.
With plans of drilling about 50 exploration wells worldwide in
2013 and about 20 high impact wells between 2013 and 2015,
Statoil will have new frontiers to operate. The new regions
include the U.S. Gulf of Mexico, Australia and Brazil.
The latest find in Canada's Atlantic region highlights the
fast-growing petroleum play that is frequently overshadowed by
the country's western oil-sands developments. Several major
) have proposed to invest in this region.
Statoil carries a Zacks Rank #5 (Strong Sell). However, there are
other Zacks Ranked #1 (Strong Buy) stocks -
Newpark Resources Inc.
Gulfmark Offshore, Inc.
) - that are expected to perform impressively over the short