Norway's biggest energy company,
) has completed the appraisal of an exploration well - 16/5-3.
The appraisal confirms that the company's Johan Sverdrup oil
discovery extends into production license (PL) 502 and adds a
small upside to the field's resources.
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A 13.5-meter oil column was proved by the well in a high-quality
Jurassic reservoir in the license and established communication
with the rest of the field in licenses 501 and 265.
The results also point to additional upside potential in the area
as Statoil proposes to drill a new exploration well at the
Cliffhanger prospect, west of Johan Sverdrup. Statoil has planned
to issue a new estimate for the whole field by the end of 2013
after including the PL 502 volumes.
The Johan Sverdrup field was discovered by Lundin Petroleum AB in
2010 and is estimated to hold around 3.6 billion barrels of oil.
The field is likely to be the largest offshore Norway since
Statfjord, discovered in 1974.
Per the Norwegian Petroleum Directorate, Sverdrup has aided in
restoration of interest in exploration in waters off the coast of
Norway. In 2013, the crude output in the region is
projected to plunge for the 13th successive year to less than
half its peak reached in 2000.
Statoil, the operator of PL 502, has a stake of 44.44%, while the
other partners include Petoro AS and Det norske oljeselskap ASA.
Statoil holds a Zacks Rank #2, which is equivalent to a
short-term Buy rating. However, there are other stocks in the
energy sector, namely,
Range Resources Corporation
EPL Oil & Gas, Inc.
) , which carry a Zacks Rank #1 (Strong Buy) and are expected to
perform impressively over the next few months.