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Equinor Strikes New Oil and Gas Reserves in the Norwegian North Sea
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Equinor ASA (EQNR - Free Report) recently made a new oil and gas discovery in the Norwegian North Sea. The discovery was made within the Rhombi prospect, which lies in the production license (PL) 090. The Norwegian energy company has drilled an exploration well and a sidetrack at water depths of 355 meters in the Rhombi prospect, approximately 10 kilometers north of the Troll field in the North Sea.
Hydrocarbon Discovery and Estimated Reserves
The Norwegian Offshore Directorate (“NOD”) has confirmed that both wells have encountered hydrocarbons (oil and gas). The hydrocarbons have been found in the Sognefjord and Fensfjord formations and show good reservoir quality. Equinor has stated that the estimated reserves lie in the range of 13-28 million barrels of oil equivalent (MMBoe). Further, more than half of the reserves are estimated to be gas.
Stakeholders in the Production License
The NOD has mentioned that this discovery is the first of its kind to be made in the region in 2024. Equinor has also made many other discoveries in the region in recent years. EQNR is the operator of PL 090, holding a 45% stake. Its partners Vår Energi and INPEX Idemitsu Norge have 40% and 15% stakes, respectively.
The operators of the license are considering the possibility of a tie-in of the new discovery to existing infrastructure and other prospects in the region. EQNR mentioned that it continues to explore the area for more oil and gas discoveries, and it is one of those areas where the company has pre-existing, well-developed oil and gas infrastructure. The company has stated that it will work toward the optimal development of the new discoveries for the best resource utilization to improve profits and reduce emissions from the same.
Smart Sand is a low-cost producer of high-quality Northern White frac sand, an ideal proppant for hydraulic fracturing and various industrial applications. The company provides proppant and other logistics services for several companies in the oil and gas industry. With sustained oil and gas market demand, SND is expected to see growing demand for its services, reflecting a positive outlook.
FuelCell Energy is a clean energy company offering low-carbon energy solutions. It produces power using flexible fuel sources such as biogas, natural gas and hydrogen. The company designs fuel cells that generate electricity through an electrochemical process that combines fuel with air, reducing carbon emissions and minimizing the environmental impact of power generation. As such, FCEL is anticipated to play a crucial role in the energy transition by enabling industries and communities to shift from traditional fossil fuels to low-carbon alternatives.
Nine Energy Service provides onshore completion and production services for unconventional oil and gas resource development. The company operates across key prolific basins in the United States, including the Permian, Eagle Ford, MidCon, Barnett, Bakken, Rockies, Marcellus and Utica, as well as throughout Canada. With a sustained demand for oil and gas in the future, the demand for NINE’s services is anticipated to increase, which should position the company for growth in the long run.
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Equinor Strikes New Oil and Gas Reserves in the Norwegian North Sea
Equinor ASA (EQNR - Free Report) recently made a new oil and gas discovery in the Norwegian North Sea. The discovery was made within the Rhombi prospect, which lies in the production license (PL) 090. The Norwegian energy company has drilled an exploration well and a sidetrack at water depths of 355 meters in the Rhombi prospect, approximately 10 kilometers north of the Troll field in the North Sea.
Hydrocarbon Discovery and Estimated Reserves
The Norwegian Offshore Directorate (“NOD”) has confirmed that both wells have encountered hydrocarbons (oil and gas). The hydrocarbons have been found in the Sognefjord and Fensfjord formations and show good reservoir quality. Equinor has stated that the estimated reserves lie in the range of 13-28 million barrels of oil equivalent (MMBoe). Further, more than half of the reserves are estimated to be gas.
Stakeholders in the Production License
The NOD has mentioned that this discovery is the first of its kind to be made in the region in 2024. Equinor has also made many other discoveries in the region in recent years. EQNR is the operator of PL 090, holding a 45% stake. Its partners Vår Energi and INPEX Idemitsu Norge have 40% and 15% stakes, respectively.
The operators of the license are considering the possibility of a tie-in of the new discovery to existing infrastructure and other prospects in the region. EQNR mentioned that it continues to explore the area for more oil and gas discoveries, and it is one of those areas where the company has pre-existing, well-developed oil and gas infrastructure. The company has stated that it will work toward the optimal development of the new discoveries for the best resource utilization to improve profits and reduce emissions from the same.
EQNR’s Zacks Rank and Key Picks
Currently, EQNR carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the energy sector are Smart Sand, Inc. (SND - Free Report) , FuelCell Energy (FCEL - Free Report) and Nine Energy Service (NINE - Free Report) , each presently carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Smart Sand is a low-cost producer of high-quality Northern White frac sand, an ideal proppant for hydraulic fracturing and various industrial applications. The company provides proppant and other logistics services for several companies in the oil and gas industry. With sustained oil and gas market demand, SND is expected to see growing demand for its services, reflecting a positive outlook.
FuelCell Energy is a clean energy company offering low-carbon energy solutions. It produces power using flexible fuel sources such as biogas, natural gas and hydrogen. The company designs fuel cells that generate electricity through an electrochemical process that combines fuel with air, reducing carbon emissions and minimizing the environmental impact of power generation. As such, FCEL is anticipated to play a crucial role in the energy transition by enabling industries and communities to shift from traditional fossil fuels to low-carbon alternatives.
Nine Energy Service provides onshore completion and production services for unconventional oil and gas resource development. The company operates across key prolific basins in the United States, including the Permian, Eagle Ford, MidCon, Barnett, Bakken, Rockies, Marcellus and Utica, as well as throughout Canada. With a sustained demand for oil and gas in the future, the demand for NINE’s services is anticipated to increase, which should position the company for growth in the long run.