May 14 (Bloomberg) -- Det Norske Oljeselskap ASA, an oil producer with a stake in Norway’s biggest find in 40 years, rose the most in three months in Oslo after the latest well at the Johan Sverdrup field signaled the possibility of more oil.
The Trondheim-based company gained as much as 4.6 percent, the most since Feb. 15, and traded 3.7 percent higher at 87.65 kroner as of 10:40 a.m., making it the biggest gainer on the Oslo stock exchange’s benchmark OSEBX index after Frontline Ltd. About 507,000 shares have been traded so far, 90 percent more than the average daily volume during the last three months.
The results of the appraisal well at license 265 are “very good” and remove “any uncertainty” about reservoir quality at the part of Johan Sverdrup bordering the field’s main western boundary fault, the company said in a statement. “The well encountered an 82-meter gross oil column, which is the largest oil column proven in the field to date.”
“This is larger than we had expected, as the highest oil column among the wells drilled earlier on the field is around 65 meters,” Pareto Securities ASA said in an e-mailed note. “This means there could be further upside to Sverdrup volumes in license 265 as both reservoir size and reservoir quality were better than expected.”
The Johan Sverdrup discovery, which could hold as much as 3.6 billion barrels according to operators Statoil ASA and Lundin Petroleum AB, has rekindled interest in the Norwegian North Sea, where crude production from maturing fields has dropped by half since peaking in 2000.
The Sverdrup discovery spans two licenses, 265 and 501. Statoil, Norway’s largest energy producer, has a 40 percent stake in license 265, while Detnor has 20 percent. The other stakeholders are Petoro AS, which manages Norway’s direct stakes in its oil and gas assets, with 30 percent, and Sweden’s Lundin, with 10 percent.
Lundin rose as much as 1.7 percent to 146.2 kronor in Stockholm and traded 0.4 percent higher as of 10:40 a.m.
While no new volume estimates for Sverdrup were announced, “we think the results de-risk license 265 substantially and justify positive share price reactions,” Swedbank AB analyst Teodor Sveen Nilsen said in an e-mail.
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