) along with its partners
) and Petoro AS has found a small gas deposit in the Nunatak
prospect in production license (PL) 532 in the Barents
Spud with the goal of adding volumes to the massive $15.5
billion Johan Castberg project, the Nunatak well - 7220/5-2 -
failed to generate commercial results with its gas discovery in
rocks of the Cretaceous age. This was also the first of the four
highly anticipated wells drilled by the rig West Hercules in
Despite being geologically the riskiest among the four
projects, the Nunatak well as evaluated first because of its
proximity to the Skrugard discovery. Nunatak - an independent
structure in a geological formation younger than - lays partly
over the latter.
While carrying out drilling operations, the partnership
acquired significant data for the further development of the
Johan Castberg field. However, the outcome at Nunatak will in no
way influence the expectations from the next three drilling
operations as these are aimed other play models. Statoil believes
that the Johan Castberg area has oil potential as well.
The West Hercules rig is expected to move to the adjoining
license PL608 to drill its second option at the Iskrystall
prospect, upon completion of the Nunatak. A prospect in the
early-middle Jurassic play, Iskrystall, was proven by the
Skrugard and Havis discoveries, at a significantly greater
Earlier this month, the Johan Castberg project was delayed by
Statoil due to a planned tax increase and cost concerns that
eroded its profitability. Statoil operates PL532 with 50%
ownership. The license partners Eni and Petoro AS have a share of
30% and 20%, respectively.
Statoil carries a Zacks Rank #4 (Sell). However, there are
Zacks Ranked #1 (Strong Buy) stocks -
PetroQuest Enerrgy Inc.
Hornbech Offshore Services, Inc.
) - that are expected to perform impressively over the short
ENI SPA-ADR (E): Free Stock Analysis Report
HORNBECK OFFSHR (HOS): Free Stock Analysis
PETROQUEST ENGY (PQ): Free Stock Analysis
STATOIL ASA-ADR (STO): Free Stock Analysis
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