Norwegian oil giant, Statoil (OL:STL) ASA (NYSE:STO) announced that it has spudded the Njord North Flank-2 (NF-2) exploration well. The well is located atlicense PL107C inthe Norwegian Sea.It is jointly operated by Statoil Petroleum AS (20%), ENGIE E&P Norge AS (40%), DEA E&P Norge AS (30%), Faroe Petroleum (7.5%) and VNG Norge AS (2.5%).
The company, through this well, will target Middle and Lower Jurassic sandstone reservoirs of the Ile and Tilje formations in a fault-bounded structural closure. The target depth is the Lower Jurassic Are Formation.
Statoil is a Norway-based major international integrated oil and gas company. It is gaining momentum with the start-up of operations on several oil and gas fields. The company is also planning turnarounds on multiple oil and gas fields in 2016 to improve recovery of resources in mature fields. Moreover, Statoil’s exit from low-profit operations and the expansion of its international asset base hold promise. Statoil has an impressive track of delivering strong exploration results. Several high impact discoveries continue to add significantly to its resource base.
Statoil’s endeavors to improve recovery of resources in mature fields are commendable. The company 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 steady production growth over the next few years on the back of its large resource base at the NCS.
Statoil currently carries a Zacks Rank #3 (Hold). Some better-ranked players from the energy sector include Sasol Ltd. (NYSE:SSL) , Enbridge, Inc. (NYSE:ENB) and Total SA (TO:TOT) . Each of these stocks sports a Zacks Rank #1 (Strong Buy).
TOTAL FINA SA (TOT): Free Stock Analysis Report
STATOIL ASA-ADR (STO): Free Stock Analysis Report
SASOL LTD -ADR (SSL): Free Stock Analysis Report
ENBRIDGE INC (ENB): Free Stock Analysis Report
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