Norwegian oil company Statoil ASA (STO) met with disappointment in its primary gas target — Crux prospect on production license PL053 in its Oseberg field in the North Sea — but encountered success at Crimp, which was the secondary target for the exploration well 30/6-28S.
The latest find in the Crimp prospect is projected to contain volumes in the range of 12-18 million barrels of recoverable oil equivalents. The well 30/6-28S confirmed an oil column of about 12 meters in the Statfjord formation.
Statoil was hopeful of finding a new gas-filled structure under the Oseberg field. However, the Crux prospect, earlier defined as a high impact gas find, did not hold hydrocarbons.
The exploration of well 30/6-28S was targeted to examine Crux prospect, a new play in the area, initially considered to be a high risk/high reward opportunity. The other purpose was to inspect another infrastructure in the vicinity of Crimp that was expected to hold fairly small volumes but attractive returns.
The oil discovery – found underlying the Oseberg field – is expected to augment the production from the adjoining facilities.
Statoil, the operator, along with its partners are in the course of completing the drilling operations in the exploration well 30/6-28S, drilled by the COSL Pioneer rig.
Statoil holds a 49.3% stake while its partners Petoro AS, Total SA (TOT), ExxonMobil Corporation (XOM) and ConocoPhillips (COP) hold 33.6%, 10.0%, 4.7% and 2.4%, respectively.
Statoil has operations in all major hydrocarbon-producing regions of the world, with an emphasis on the Norwegian Continental Shelf (NCS). We believe that Statoil is well positioned to sustain its steady production growth for the next few years on the back of its large resource base at NCS.
Statoil holds a Zacks #3 Rank, which is equivalent to a Hold rating for a period of one to three months. We maintain a Neutral rating on the stock for the long term.
To read this article on Zacks.com click here.
Zacks Investment Research
