Statoil Hits Oil Near Johan Sverdrup - Analyst Blog

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Norwegian major Statoil ASA ( STO ) 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.

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 ( RRC ), Cabot Oil & Gas Corp. ( COG ) and Dril-Quip, Inc. ( DRQ )  - which hold a Zacks Rank #1 (Strong Buy) and are good investment options.



CABOT OIL & GAS (COG): Free Stock Analysis Report

DRIL-QUIP INC (DRQ): Free Stock Analysis Report

RANGE RESOURCES (RRC): Free Stock Analysis Report

STATOIL ASA-ADR (STO): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Business , Stocks

Referenced Stocks: COG , DRQ , PL , RRC , STO

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