Norwegian oil and gas major
) exploration campaign relating to a wildcat on the Lovund
prospect in the Norwegian Sea has failed. The company did not
encounter any hydrocarbons in the probe 6610/10-1.
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The primary purpose of spudding the exploration well 6610/10-1
was to ascertain petroleum in Lower Jurassic reservoir rocks,
known as the Bat group, in the Helgeland basin. The well was
drilled to a total depth of 2,988 meters.
According to Norwegian Petroleum Directorate, the reservoir rocks
in the Bat group stumbled upon by the wildcat was of superior
quality. However, the well turned out to be dry.
The well 6610/10-1 lies on Statoil's wholly owned production
license 386 and is located around 90 kilometers north-east of the
producing Norne field. The well 6610/10-1 was the first to be
drilled in the license.
The well was drilled by
) semi-submersible drilling rig West Alpha. The rig is now
expected to start work for the U.S. super major
) in the North Sea to drill production wells on the Balder field.
This news follows the company's relinquishment of its stakes in
the deepwater Karama block. Statoil found no hydrocarbon reserve
in the block situated offshore Makassar Strait. These
unsuccessful ventures are costly and are likely to put downward
pressure on the company's earnings.
However, its widespread operations in all major
hydrocarbon-producing regions of the world as well as the growing
upstream presence in the emerging basins of the Caspian Sea, West
Africa and the deepwater U.S. Gulf of Mexico will enable Statoil
to sustain its production growth for the next few years.
Statoil holds a Zacks Rank #3, which is equivalent to a Hold
rating for a period of one to three months. However, there are
other stocks in the oil and gas sector such as
Royal Dutch Shell Plc
), which holds a Zacks Rank #1 (Strong Buy) and is expected to