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Statoil Finds Gas in the Gymir Prospect of Aasta Hansteen - Analyst Blog

Norwegian major Statoil ASASTO has hit gas in the Gymir prospect in the Aasta Hansteen area along with its PL602 partners.

With the latest discovery, the company has struck a hat trick in the Aasta Hansteen area and has helped in unlocking the full potential of the area.

The three discoveries - Snefrid Nord, Roald Rygg and Gymir - combined are estimated to hold total volumes of 75-120 million barrels of recoverable oil equivalent. This corresponds to around 1/3 of the recoverable volumes at Aasta Hansteen.

In order to enhance utilization of the infrastructure and extend the production plateau, the discoveries will now be further appraised for future ties in the Aasta Hansteen facilities.

Drilled by the Transocean Spitsbergen rig in the Gymir prospect, the well 6706/11-2, established a gross 70-meter gas column in the Nise Formation with good reservoir qualities.

Located about 8 kilometers away from Roald Rygg and 14 kilometers away from Snefrid Nord, Gymir is projected to hold volumes be in the range of 6-19 million barrels of recoverable oil equivalent.

Aasta Hansteen is an important project in Statoil's portfolio and represents the largest SPAR platform in the world and the biggest ongoing field development project in the Norwegian Sea. The project received approval for the plan for development and operations (PDO) by the Norwegian Ministry of Petroleum and Energy in 2013. Production is scheduled to begin in 2017.

The company carried out drilling operations at all the three wells in an exceptionally efficient manner. This resulted in total savings of 50 days or 360 MNOK against the initial plan. This was possible because of STEP (Statoil technical efficiency program) within drilling. The competence of the onshore planning team and the Transocean Spitsbergen crew also helped to achieve the full potential of the drilling process.

Statoil currently carries a Zacks Rank #2 (Buy). Some other players from the same space worth considering are Transmontaigne Partners L.P. TLP , LRR Energy, L.P. LRE and Pembina Pipeline Corporation PBA . All these stocks sport a Zacks Rank #1 (Strong Buy).

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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