Equinor Encounters Gas and Condensate Finds in the Norwegian North Sea

Equinor ASA EQNR, a Norwegian integrated energy company, has made two new gas and condensate discoveries in the Sleipner area of the Norwegian North Sea. EQNR described the two discoveries as the largest ones made this year. The discoveries were made in the Lofn and Langemann prospects, located within the production license (PL) 1140. Equinor holds a 60% working interest in PL 1140, and Aker BP holds the remaining stake.

Equinor drilled the two wildcat wells 15/5-8 S and 15/5-8 A, toward the north of the Eirin field, using the Deepsea Atlantic semi-submersible rig. The preliminary analysis of the data from these wells suggests that they may hold nearly 5-18 million standard cubic meters of recoverable oil equivalents. EQNR stated that these discoveries underscore the significance of continuing the exploration efforts on the Norwegian Continental Shelf (NCS). The NCS remains considerably underexplored, with significant untapped energy resources. The company believes that these resources are crucial for a reliable energy supply to Europe.

Equinor also noted that the discoveries made close to its existing fields could be developed by tying them into nearby subsea facilities, thereby speeding up production timelines. This also reduces environmental impact, as the discoveries have low carbon dioxide emissions from production and can generate strong returns for Equinor. The company intends to continue such developments on the NCS.

The two wells 15/5-8 S and 15/5-8 A are the first two exploration wells drilled in PL 1140, awarded to EQNR in 2022, per the Norwegian Offshore Directorate. The gas and condensate in both these wells were found in the Hugin formation, formed by high-quality sandstones. The wells have been permanently plugged and abandoned.

EQNR’s Zacks Rank and Key Picks

EQNR currently carries a Zacks Rank #3 (Hold).

Some top-ranked stocks from the energy sector are Oceaneering International OII, Canadian Natural Resources Ltd. CNQ and FuelCell Energy FCEL. While Oceaneering currently sports a Zacks Rank #1 (Strong Buy), Canadian Natural Resources and FuelCell carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Oceaneering International delivers integrated technology solutions across all stages of the offshore oilfield lifecycle. The company is a leading provider of offshore equipment and technology solutions to the energy industry. OII’s proven ability to deliver innovative, integrated solutions supports ongoing client retention and new business opportunities, ensuring steady revenue growth.

Canadian Natural Resources is one of the largest independent energy companies in Canada engaged in the exploration, development and production of oil and natural gas. The company boasts a diversified portfolio of crude oil, natural gas, bitumen and synthetic crude oil. It has delivered 25 consecutive years of dividend increases, one of the longest streaks among global oil producers.

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.

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