Equinor (EQNR) & Partners Find Oil In PL167 At Utsira High

Equinor ASA (NYSE:EQNR) along with partners Lundin and Spirit Energy have discovered oil in the PL 167 license at the Utsira High, located in the North Sea. Per initial estimates, the find is likely to hold recoverable 15-35 million barrels of recoverable oil.

The Lille Prinsen is part of the PL 167 license and located 200 kilometers west of Stavanger and north-west of the Johan Sverdrup field.

Along with the primary find, an additional discovery with very good reservoir quality was made but the volume has not been appraised. The 2004 gas discovery Verdandiwas also evaluated by the well. This appraisal reiterates the estimate of 4-11 million recoverable oil equivalent. Further operations will establish whether these two shallower reservoirs can be commercially developed.

The development of the existing infrastructure will be considered, following the confirmation of the production license. The results from the drilling indicate upside potential in this discovery.

Equinor, operator of PL167, has an interest of 60%. Other two partners — Lundin Norway AS and Spirit Energy Norge AS — hold 20% each.

Recently, Equinor won the Uirapuru exploration block with co-venturers Exxon Mobil Corporation (NYSE:XOM) and Petrogal Brasil during Brazil’s 4th pre-salt bid round. The company also gained access to DoisIrmãos block with co-venturers Petroleo Brasileiro S.A. or Petrobras (NYSE:PBR) and BP plc (NYSE:BP) .

These new blocks in Brazil add to Equinor’s existing portfolio of BM-S-8 and Carcará North, in the Santos basin and the BM-C-33 in the Campos basin, including the Pão de Açúcar discovery.

Price Performance

In the past three months, Equinor’s shares have gained 52.9% compared with the industry’s 36% rise.

Zacks Rank & Other Key Picks

Equinor currently sports a Zacks Rank #1 (Strong Buy).

You can see the complete list of today’s Zacks #1 Rank stocks here.

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