Statoil Climbs on Canada Find, Advancing Oil Prices: Oslo Mover
Statoil ASA (STL), the Norwegian energy producer expanding abroad to make up for falling output at home, gained the most in almost a year in Oslo after a third discovery off the coast of Canada and as oil prices advanced.
The shares climbed as much as 3.8 percent, the most since Sept. 14, 2012, and traded 3.3 percent higher at 136.3 kroner at 10:59 a.m. That makes the Stavanger-based company the third-best performer on the Stoxx Europe 600 Oil & Gas Index. About 4.5 million shares changed hands, more than 65 percent above the average volume in the last three months.
Statoil made a new oil discovery at the Flemish Pass basin off the coast of Canada, it said in a statement yesterday. The find, at Bay du Nord, is located 10 kilometers (6.2 miles) from the Harpoon prospect and about 20 kilometers from the Mizzen discovery, the company said.
“The discovery is particularly positive for the Harpoon and Mizzen discoveries made earlier in 2013, as the commercial potential of these increase,” Swedbank First Securities analyst Teodor Sveen Nilsen said by e-mail today. Bay du Nord and Harpoon are valued at about 1 kroner per share, he wrote.
Statoil’s share price is also being helped by rising oil prices, Bank of America Merrill Lynch said in a note to investors. The bank raised its rating on the stock to buy.
West Texas Intermediate futures gained as much as 3 percent in New York, extending yesterday’s 2.9 percent advance, amid concerns that unrest in the Middle East could curb output. The futures traded 0.6 percent higher at $109.68 a barrel as of 9:45 a.m. in London.
Statoil, which operates more than 70 percent of Norway’s oil and gas output, is seeking to increase production by an average 3 percent a year to 2.5 million barrels of oil equivalent a day by 2020. It’s expanding abroad and into unconventional resources such as shale oil and gas to help meet its target.
Statoil on July 25 reported second-quarter profit that unexpectedly fell 2 percent, hurt by falling production and lower prices. The company also said output would drop in 2013 after it sold some Norwegian fields and on lower output growth from its U.S. shale gas assets.
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