Statoil ASASTO has received six Licensing Options in Ireland's 2015 Atlantic Margin Licensing Round.
Statoil will operate four of the Licensing Options but work in partnership with ExxonMobil Corporation (XOM) on the other two. ExxonMobil will serve as the operator in these two Licensing Options.
The Licensing Options awarded in the first phase of this licensing round were published in a map with grid locations by Ireland's Department of Communications, Energy and Natural Resources ("DCENR").
The six Licensing Options awarded to Statoil are spread over a total area of about 7,700 square kilometers in the Porcupine Basin. They lie in water depths ranging between 1,100 and 3,150 meters. Statoil and ExxonMobil each hold 50% equity in all the Licensing Options.
Work program obligations are restricted to 2D and 3D seismic surveys to be attained during 2016 and 2017. The seismic data assessment will ascertain whether the company will convert the Licensing Options into Frontier Exploration Licenses to facilitate further exploration drilling at a later stage.
Statoil's presence in Ireland dates back to 1992. Currently, Royal Dutch Shell plc (RDS.A) operated Corrib gas field off the country's north-west coast is the company's main asset in Ireland. Statoil holds 36.5% interest in it.
In recent times, Statoil has delivered strong exploration results, adding significantly to its resource base by making several high impact discoveries. The latest finds give the company access to new regions of Norway, Russia, Azerbaijan, Tanzania as well as Australia, thereby paving the way for long-term growth. The latest pursuit in Ireland enhances its portfolio.
Statoil carries a Zacks Rank #3 (Hold). Some better-ranked players from the energy sector are SolarEdge Technologies, Inc. SEDG , Braskem S.A. BAK and Enviva Partners, LP EVA . Each of these stocks sports a Zacks Rank #1 (Strong Buy).