Statoil Rises as Gullfaks Find Means Cheap Oil: Oslo Mover
The shares rose as much as 2.3 percent, the most since Feb. 7, and were up 2 percent at 136.2 kroner as of 12:13 p.m. in Oslo, after yesterday trading at the lowest intraday level since October 2011. About 1.7 million shares have traded so far today, or 54 percent of the three-month average daily volume.
Statoil estimates the discovery to hold 40 million to 150 million recoverable barrels of oil equivalent at a shallower level than existing Brent deposits in the license, it said in a statement today. While the estimates are still uncertain, a well test indicates good flow rates, Statoil said.
“The development can be conducted relatively quickly and very cheaply compared to an average North Sea oil field development,” analysts at Pareto Securities AS said in a note. The find may be worth as much as $15 a barrel of oil equivalent, or 1 krone to 3 kroner a share, according to the Oslo-based investment bank.
Interest in the North Sea, where crude output has halved since 2000, has been renewed after Statoil and Lundin Petroleum AB (LUPE) found oil at the Johan Sverdrup field, which may hold 1.7 billion to 3.3 billion barrels of oil equivalent. Statoil is seeking to boost production by a quarter to 2.5 million barrels of oil equivalent a day in 2020.
Statoil is the operator of the license with a 70 percent stake, while Petoro AS holds 30 percent.
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