) has started production on the Stjerne field in the North Sea.
This marks the company's fifth fast-track project that came
online following the recent commencement of the Skuld field at
EPL OIL&GAS INC (EPL): Free Stock Analysis
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Discovered in 2009, the Stjerne field consists of a four-slot
seabed template. While two wells will generate oil and gas, the
other two will bring in water into the reservoir for pressure
support. Statoil has already finished drilling one of these
Statoil added that the field's economy looks relatively promising
and was NOK 500 million ($85.7 million approximately) below the
company's estimated budget. The Stjerne project took 39 months
for completion after it was made part of Statoil's fast-track
portfolio. But the company plans to reduce its implementation
time for the new fast-track ventures to 30 months.
The recoverable reserves of the field − located 13 kilometers
southwest of the Oseberg South platform in the North Sea − are
expected to be 49.2 million barrels of oil equivalent (MMBoe),
with oil accounting for 20.7 MMBoe of that total. Moreover, the
project is expected to boost the recovery level to 4.4 MMBoe from
the Oseberg Omega North reservoir. As per the PDO, total
production is expected at 7,800 BOE per day.
Statoil aims to bring five fast-track projects online in 2013,
with Skuld, Hyme, Visund South and Vigdis North East fields
already commissioned earlier. The fast-track projects aid in
reducing the time of bringing a field into the development phase
by almost half of the generally accepted time of five years.
Statoil holds a Zacks Rank #3, which is equivalent to a
short-term Hold rating. However, there are other stocks in the
energy sector, namely,
Range Resources Corporation
EPL Oil & Gas, Inc.
) that are expected to perform impressively over the next few
months. Range Resources and EPL carry a Zacks Rank #1 (Strong
Buy), while YPF carries a Zacks Rank #2 (Buy).