Norway based energy company Statoil ASA (STO) has come across a huge oil deposit at the Geitungen prospect on Utsira High in the Norwegian North Sea.
According to the company, the exploration well 16/2-12 in the production license PL 265 license well – drilled to a vertical depth of 2,045 meters below sea level at a depth of 115 meters – has a proven oil column of 35 meters. The Geitungen prospect, which was drilled by the rig Ocean Vanguard, is estimated to hold total recoverable reserves of 140 million to 270 million barrels of oil equivalent.
Wells 16/2-12 signifies the eighth well spud in PL 265. Statoil, as the operator of license PL 265, holds a 40% stake, while its partners – Petoro AS, Det norske oljeselskap ASA and Lundin Norway AS – own 30%, 20% and 10%, respectively.
This new discovery emphasizes Statoil’s belief in the exploration potential of the mature region of Norwegian Continental Shelf (NCS), which can be restored with high value barrels. Geitungen is considered to be a separate prospect in the license PL 265.
Statoil targets to capture the full potential of the stretched Utsira High area, where it secured new acreage in north and south of Johan Sverdrup in last year’s awards in pre-defined areas (APA). The company aims to spud about 8-12 wells between 2012-2014.
The drilling rig Ocean Vanguard is likely to move to Johan Sverdrup once operations are concluded on well 16/2-12. The rig will drill two appraisal wells in the central and southern parts of PL 265.
Statoil, which recently contracted Schlumberger Limited (SLB) for electric wireline logging services on the NCS, holds a Zacks #2 Rank which translates to a Buy rating for a period of one to three months. Longer term, we maintain a Neutral recommendation on the stock.
More From Zacks.com