Statoil (STO) Discovers Gas Deposits in Valemon West Field

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Statoil ASASTO recently announced that it has hit new gas deposits on the Valemon West field.

The discovery, which was made just two years after Valemon was brought online, is estimated to hold resources between 20 million and 50 million barrels of oil equivalent.

Located 160 kilometers north-west of Bergen, this is the seventh exploration well that has been drilled in production licence 193 D, Valemon Unit. The jackup rig West Elara was used to drill the exploration well from Valemon to a vertical depth of 4,337 meters below sea level. Water depth in the area is 133.5 meters. Currently, the well is reaching completion and has been put on stream from the Valemon platform.

We note that the fragmented nature as well as its high pressure and high temperature of the Valemon reservoir makes it complex.

Statoil, the operator of the Valemon Unit holds 53.775%. Other partners include Petoro AS, Centrica Resources (Norge) AS and A/S Norske Shell holding 30%, 13% and 3.225%, respectively.

Gas from Valemon is transferred through the existing pipeline from Huldra to Heimdal, which is a hub for further shipping to European gas markets.

Condensate is channelled to Kvitebjørn for stabilisation and further transport to the Mongstad processing complex, north of Bergen. A submarine cable transfers electricity from Kvitebjørn to Valemon.

The plan for development and operation (PDO) of the Valemon field was sanctioned by the Ministry of Petroleum and Energy in Jun 2011. The field was brought online on Jan 3, 2015.

Investor confidence on the Statoil stock is reflected in its price chart. Shares of the company appreciated 34.8% in the last one year, while the Zacks categorized Oil & Gas-International Integrated industry gained 33.5% in the same time span.

Statoil currently carries a Zacks Rank #3 (Hold). Some better-ranked players in the same space include Denbury Resources Inc. DNR , Holly Energy Partners LP HEP and Noble Midstream Partners L.P. NBLX . All these stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .

Denbury Resources posted a positive earnings surprise of 100.00% in the last reported quarter. It had an average earnings surprise of 283.33% in the four trailing quarters.

Holly Energy Partners posted a negative earnings surprise of 23.26% in the preceding quarter. It had an average negative earnings surprise of 0.96% in the four trailing quarters.

Noble Midstream Partners posted a negative earnings surprise of 77.78% in the last reported quarter.

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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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