Equinor Discovers Light Oil In Barents Sea On Second Try
Zacks Investment Research | Aug 19, 2019 09:56PM ET
Equinor ASA (NYSE:EQNR) recently announced the discovery of oil in the Sputnik exploration well, located in the Barents Sea, around 30 kilometres North East of the Wisting finding. The company witnessed an oil column of 15 meters in the Triassic sandstone reservoir in the PL855 license, with samples comprising both light oil and water.
The company’s initial estimate of recoverable resources from the discovery is currently in the range of 20-65 million barrels of oil. Finding oil in the well is expected to encourage Equinor as it has acquired a strong acreage position in the region, which has a complex geology. However, the commerciality of oil extraction from the discovery is yet to be determined.
Notably, Gemini Nord was the first well drilled by the company in the PL855 license in 2017. The reservoir channel system found back then with uncommercial oil deposits was smaller than the recent discovery. The Sputnik exploration well has a vertical depth of 1569 metres under the seabed. The company used Seadrill’s sixth generation ultra-deepwater semi-submersible drilling rig, namely West Hercules, at the site.
Operator Equinor owns a 55% stake in the PL855 license, while partners OMV of Austria and Norwegian state-run Petoro hold 25% and 20% interest, respectively.
In another development, Equinor recently closed the $965-million acquisition of a 22.45% additional stake in the U.S. Gulf of Mexico’s (GoM) Caesar Tonga oilfield from Royal Dutch Shell (LON:RDSa) plc Zacks Investment Research
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