) share price jumped 0.2% on the announcement that it has nearly
completed the drilling of the Kramsno prospect (well 7220/4-1).
) and Petoro AS partner Statoil in this drilling venture.
The probe was drilled by the rig West Hercules at about 6 miles
northwest of the 7220/8-1 Johan Castberg discovery in the Barents
Sea and about 154 miles northwest of Hammerfest.
The primary exploration target was to prove petroleum in
reservoir rocks from the Middle and Early Jurassic formations -
Sto, Nordmela and Tubaen. The secondary exploration target was to
establish petroleum in reservoir rocks from the Late Triassic
formation - Snadd.
The well, drilled to a vertical depth of 3,209 meters below the
sea surface, hit a gross gas column of about 130 meters in the
Sto and Nordmela formations. The reservoir quality was poorer
than expected and did not deliver the expected oil volumes. The
well hit an almost 45-meter tall gross gas column in the Snadd
Per the initial calculations, the find is estimated to hold 2-4
billion standard cubic meters of recoverable gas. The prospects
chosen for the campaign will examine diverse play models in
various geological settings and are independent of each other.
This is the sixth exploration well in PL 532, which will now be
permanently plugged and abandoned. The license was awarded in the
20th licensing round in 2009.
Statoil had planned on drilling five wells around the Johan
Castberg field and has almost approached the end of this program.
To date, it has drilled four wells, of which only one resulted in
an oil discovery. Drivis, is the last prospect to be drilled
under this campaign.
Statoil, the operator of PL532, owns 50%. Eni SpA and Petoro AS
hold 30% and 20%, respectively.
Statoil carries a Zacks Rank #3 (Hold). Some better-ranked stocks
in the oil and gas sector include
Helmerich & Payne, Inc.
Matrix Service Company
). Both these stocks hold a Zacks Rank #1 (Strong Buy).
ENI SPA-ADR (E): Free Stock Analysis Report
HELMERICH&PAYNE (HP): Free Stock Analysis
MATRIX SERVICE (MTRX): Free Stock Analysis
STATOIL ASA-ADR (STO): Free Stock Analysis
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