Statoil ASA ([stock]STO[/stock]) has initiated its gas production from its 2009 Beta West discovery, situated 1.5 kilometer west of the Sleipner West reservoir in the North Sea. The company is progressing well with its fast-track development project and brought the discovery on-stream within two years.
The 15/9-B-1 discovery well was drilled to vertical and measured depths of 3,760 meters and 6,069 meters, respectively, from the Sleipner B wellhead platform in Sleipner West. The objective of the well was to establish the presence of hydrocarbon in Middle Jurassic reservoir rocks (the Hugin formation). However, Statoil determined from the results of five appraisal wells that the oil could not be recovered.
Following the appraisal of the gas or condensate discovery 15/9-B-1, Beta West is now expected to have the reserve potential of 80 million barrels of oil equivalent (MMBoe). Previously, it was expected to hold between 38 MMBoe and 63 MMBoe. The Norwegian operator remains optimistic and believes that latest expected reserves will likely increase the output from Sleipner B by about 15,000 Boe daily.
Holding a 58.35% stake in production licenses 029 and 046 of Sleipner West field, Statoil acts as the operator. Other associate partners of Sleipner West, located in blocks 15/6 and 15/9 of Norway, comprise ExxonMobil Exploration & Production Norway AS, an affiliate of ExxonMobil Corporation ([stock]TOT[/stock]) subsidiary, Total Exploration and Production Norge AS, with 9.41% stake.
Statoil continues with its vital fast-track development projects, which draw attention toward promising finds and prospects that have available capacity. Given its large resource base in Norwegian Continental Shelf, Statoil’s venture to sustain its steady production momentum over the next few years appears positive. We believe the company’s operations in all major hydrocarbon-producing regions of the world position it well for growth. The company holds a Zacks #1 Rank, which is equivalent to a short-term Strong Buy rating.
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