) has encountered a small deposit of oil at exploration well
16/2-18S near the Johan Sverdrup field, as per the Norwegian
Petroleum Directorate and Lundin Petroleum.
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Wildcat well 16/2-18S was drilled about five miles west of the
main bounding fault of the Johan Sverdrup discovery in the North
Sea. The primary exploration goal was to confirm petroleum in
reservoir rocks of Jurassic age at basement height. Inspection of
the reservoir properties in weathered/fractured granite at the
basement was the secondary target.
The mid-water semisubmersible rig, Ocean Vanguard, was used to
drill well 16/2-18S. Upon completion, the rig is likely to move
to drill wildcat well 30-9-25 on production license (PL) 104.
The well hit upon a 50-feet oil zone in the weathered/fractured
granite at the basement but did not discover reservoir rocks.
However, no oil-water contact was established and the oil in the
basement was not in contact with the Johan Sverdrup discovery.
The upper part of the basement has undergone extensive data
acquisition and sampling. However, a mini-drill stem test carried
out in the weathered/fractured basement revealed that the
reservoir had poor production properties.
Exploration well 16/2-18S, the 13th to be drilled on PL 265, has
been spud to a vertical depth of 6,390 feet below the sea surface
and was completed in the basement rocks. The well has now been
permanently plugged and abandoned.
Statoil operates PL 265 with a stake of 40%. The other partners
include Petoro, Det norske oljeselskap and Lundin Norway, holding
30%, 20% and 10%, respectively.
Statoil carries a Zacks Rank #4 (Sell). However, there are other
stocks in the oil and gas sector -
Range Resources Corporation
Cabot Oil & Gas Corp.
) - which hold a Zacks Rank #1 (Strong Buy) and are good