Statoil Inks Swap Agreement With BP For Australian Wells

Statoil (OL:STL) ASA (NYSE:STO) has inked a swap agreement with BP plc (NYSE:BP) and has been granted regulatory approval to take over two exploration permits and extend its work program in the Great Australian Bight.

The agreement between Statoil and BP includes four offshore petroleum titles - EPP37, EPP38, EPP39 and EPP40. In offshore exploration permits, EPP37 and EPP38, Statoil has farmed out its 30% equity interest to BP and departed from the licenses. While in offshore exploration permit, EPP39 and EPP40, BP has farmed out its 70% equity interest to Statoil and exited the licenses. Statoil has become the operator holding 100% equity interest in EPP 39 and EPP40.

These transfers have been approved by the National Offshore Petroleum Titles Administrator (NOPTA). Statoil has also been granted a suspension and extension of the work commitments in EPP39 and EPP40. The approved extension comprises the drilling of one exploration well in EPP39 prior to Oct 30 2019.

Statoil has planned several prospects in its license area, including the Stromlo-1 well candidate in EPP39. Stromlo provides high-impact potential in a frontier exploration setting, while EPP40 signifies upside exploration potential.

Statoil is a Norway-based major international integrated oil and gas company. Statoil has increased its drilling plan for 2017 by about 30% compared with 2016. The company intends to drill about 30 exploration wells in 2017, of which more than 50% will be drilled on the NCS. In 2016, the company, as operator and partner, finished a total of 23 exploration wells. This raises optimism and is likely to boost shareholder value as well.

In recent times, Statoil has delivered strong exploration results, adding significantly to its resource base by making several high impact discoveries. The latest finds give the company access to new regions of Norway, Russia, Azerbaijan, Tanzania and Australia, thereby paving the way for long-term growth.

Investor confidence on the Statoil stock is reflected in its price chart. Shares of the company gained 0.8% in the last three months, while the Zacks categorized Oil & Gas – International Integrated industry registered a decrease of 0.4% in the same time span.

Statoil currently has a Zacks Rank #3 (Hold). Some better-ranked stocks from the same space include SunCoke Energy, Inc. (NYSE:SXC) and Canadian Natural Resources Limited Ltd. (TO:CNQ) . All these stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

SunCoke Energy posted a positive earnings surprise of 120.0% in the preceding quarter. The company beat estimates in two of the four trailing quarters with an average negative earnings surprise of 35.78%.

Canadian Natural Resources posted a positive earnings surprise of 30.77% in the preceding quarter. It surpassed estimates in two of the four trailing quarters with an average negative earnings surprise of 275.46%.

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SunCoke Energy, Inc. (SXC): Free Stock Analysis Report

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