Statoil Acquires 50% Stake In Turkish Thrace Basin Licenses

Norwegian energy giant Statoil ASA (NYSE:STO) announced that it would acquire a 50% interest in two licenses in the Thrace region of the European northwestern portion of Turkey from Calgary-based Valeura Energy Inc. The licenses cover an area of 540 square kilometer in proximity to the existing infrastructure in a region where gas has been produced since the 1920s.

The agreement covers the exploration of deeper formations below 2,500 meters. Valeura will continue to own the remaining 50% stake as well as the 100% ownership of shallow formations above 2,500 meters.

The agreement is pending governmental approval. Statoil expects to receive a favorable decision by the end of Sep 2016. The work program in the licenses consists of several phases. The first phase consists of drilling one exploration well, with planned spudding late this year or in early 2017. The exploration phase will test unconventional gas potential in the deep parts of the basin.

Statoil is a Norway-based major international integrated oil and gas company. The company operates in four segments: Exploration and Production Norway, Natural Gas, International Exploration and Production and Manufacturing and Marketing.

Statoil’s endeavor to improve recovery of resources in mature fields is 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 its production growth momentum for the next few years on the back of its large resource base at NCS.

Currently, Statoil carries a Zacks Rank #2 (Buy). Other favorably placed stocks in the oil and gas sector include CVR Refining, LP (NYSE:CVRR) , Transocean Partners LLC (NYSE:RIGP) and Braskem S.A. (NYSE:BAK) . Each of these stocks sports a Zacks Rank #1 (Strong Buy).

TRANSOCEAN PTN (RIGP): Free Stock Analysis Report

STATOIL ASA-ADR (STO): Free Stock Analysis Report

BRASKEM SA (BAK): Free Stock Analysis Report

CVR REFINING LP (CVRR): Free Stock Analysis Report

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