Equinor Gets Go-Ahead for Drilling Two Wildcat Wells in the North Sea

Equinor ASA EQNR, a Norwegian integrated energy company, has secured drilling permits from the Norwegian Offshore Directorate to drill two wildcat wells in the North Sea. Wildcat wells are exploratory wells drilled in regions where hydrocarbons have not been previously detected. Equinor received the first drilling permit for wellbore 34/4-19 S, which is located within the production license (PL) 057. The second permit secured by the company is for the well 34/6-9 S, which is situated in PL 554.

Drilling Operations

For wellbore 34/4-19 S, drilling operations will be executed by the Deepsea Atlantic semi-submersible rig owned by Odfjell Drilling. Equinor holds a 31% working interest in PL 057 and is the operator of the license. The other partners in this license are Petoro with a 30% interest, Harbour Energy Norge with a 24.5% interest, and INPEX Idemitsu Norge and Vår Energi holding 9.6% and 4.9% interests, respectively.

For the exploratory well 34/6-9 S, drilling operations will be conducted by the COSLInnovator semi-submersible drilling rig. Equinor is also the operator of PL 554 with a 40% working interest in the license. The other partners in this license are Aker BP and Vår Energi, each holding a 30% working interest.

Details of the Semi-Submersible Rigs

The Deepsea Atlantic is a sixth-generation semi-submersible rig, suitable for deepwater operations in harsh environments. The rig can accommodate nearly 120 people and has a maximum drilling depth of 10,670 meters.

COSL’s COSLInnovator rig can operate in harsh, challenging environmental conditions and is suited for operations in the North Sea and Norwegian Sea. The rig can operate in water depths of 750 meters.

EQNR’s Zacks Rank & Key Picks

Currently, EQNR carries a Zacks Rank #4 (Sell).

Some better-ranked stocks from the energy sector are Repsol S.A. REPYY, Antero Midstream Corporation AM and Galp Energia SGPS SA GLPEY. While Repsol sports a Zacks Rank #1 (Strong Buy), Antero Midstream and Galp Energia carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks Rank #1 stocks here.

Repsol is a global multi-energy company, involved in exploration and production activities as well as refining and marketing petroleum products. The company is also actively involved in transitioning toward cleaner and more sustainable energy solutions. This suggests that Repsol is positioning itself in line with global energy transition needs.

Antero Midstream generates stable cash flow by providing midstream services under long-term contracts with Antero Resources. The company’s higher dividend yield, compared to its sub-industry peers, makes it an attractive choice for investors who seek consistent returns.

Galp Energia is a Portuguese energy company engaged in exploration and production activities. The company’s oil exploration efforts have yielded positive results, particularly the Mopane discovery in the Orange Basin, offshore Namibia. After the initial exploration phase, Galp estimated that the Mopane prospect could hold nearly 10 billion barrels of oil. This discovery allows Galp to diversify its global presence, with the potential to become a significant oil producer in the region.

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This article originally published on Zacks Investment Research (zacks.com).

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