) share price dropped by 0.4% and 0.1% respectively, for two
consecutive trading sessions after it announced the results from
its first drill stem test in the Tanzania Block 2 offshore
discoveries that was partnered by
). However, after a rise of 1.1% in the third trading session,
the share price closed at $27.17.
The Zafarani-2 operation appraised through two separate
intervals. During the test, which was restricted by equipment,
gas flowed at a maximum average daily rate of 66 million standard
cubic feet. The appraisal proved good reservoir quality and
Performed in a water depth of 2,400 meters and about 80
kilometers off the coast of southern Tanzania, the drill stem
test operation, was carried out through a re-entry in the
The data obtained through these tests will aid in reducing
technical uncertainties in a potential future Tanzania offshore
as well as LNG development.
It is believed that the production well rate potential is
higher than the rates obtained during the equipment constrained
test. The planned appraisal in the Zafarani reservoir will
conclude with the completion of the Zafarani-2 operation followed
by the appraisal of Zafarani-3 well. This forms the basis of
field development in Tanzania Block 2.
The Zafarani-2 well test announcement was preceded by the
Mronge-1 discovery made in Dec 2013. This represented the fifth
discovery in Block 2 that brought the natural gas in place
volumes upto 17-20 trillion cubic feet.
Statoil operates the license on Block 2 on behalf of Tanzania
Petroleum Development Corporation, with a working interest of
65%. The remaining 35% is held by ExxonMobil Exploration and
Production Tanzania Limited.
Staoil currently holds a Zacks Rank #3 (Hold). Other stocks in
the oil and gas sector such as
Helmerich & Payne, Inc.
Patterson-UTI Energy Inc.
) with a Zacks Rank #1 (Strong Buy) are expected to
HELMERICH&PAYNE (HP): Free Stock Analysis
PATTERSON-UTI (PTEN): Free Stock Analysis
STATOIL ASA-ADR (STO): Free Stock Analysis
EXXON MOBIL CRP (XOM): Free Stock Analysis
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