Statoil ASA (STO) has dug out a dry well in its latest wildcat drilling in the Norwegian North Sea, according to Norwegian Petroleum Directorate.
The well, 15/8-2, was drilled around 5 miles west of the Sleipner Vest field in production license (PL) 303, which is operated and solely owned by Statoil. The well drilled using China Oilfield Services’ newbuild deep-water semi-submersible COSL Pioneer.
The main purpose of the well was to verify petroleum in Middle Jurassic reservoir rocks namely the Hugin and Sleipner formations. The unit drilled to 4631 meters touched both Hugin and Sleipner formations, with the former exceeding reservoir development expectations and the latter performing as expected.
This turned out to be the seventh exploration well to be drilled on license 303, awarded in the Awards in Predefined Areas (APA) 2003 round. Both wells will be blocked permanently and abandoned, now that the collected data and sampling have confirmed these as dry.
The drilling facility will advance to PL 152 in the northern part of the North Sea, to drill another wildcat well –– 33/12-9 S — for Statoil. Norway-based Statoil is the operator of PL 152 as well.
Statoil recently achieved success in Gudrun project, off Norway, which lies in PL 025 of the North Sea. The venture is expected to come online in the first quarter of 2014. Its West Epsilon rig is actively drilling wells that need to be completed for production start-up in 2014.
Statoil’s endeavour is to constantly review its portfolio and generate value for its shareholders. The company holds a Zacks #2 Rank, which is equivalent to a Buy rating for a period of one to three months. For the long term, we maintain a Neutral rating on the stock. The company faces tough competition from BP Plc (BP) and ExxonMobil Corporation (XOM).
