Equinor ASA EQNR, a Norwegian integrated energy company, announced that it has encountered oil at a new exploration well in the Johan Castberg field. The exploration well was drilled using the Transocean Enabler semi-submersible rig. EQNR’s Johan Castberg field recently reached a production milestone, achieving a peak output capacity of 220,000 barrels of oil per day.
New Discovery at the Barents Sea
The exploration well, 7720/7-DD-1H, was drilled in the Drivis Tubåen prospect of the Johan Castberg field. The Johan Castberg field lies within the production license (PL) 532. Per the Norwegian Offshore Directorate, this exploratory well is the 14th one drilled within PL 532. It was drilled as an exploratory extension from another producing well. The new discovery will add to the existing reserves at the field. The preliminary estimates suggest that the discovery holds around 9-15 million barrels of oil.
Equinor operates the Johan Castberg field, alongside its partners Vår Energi and Petoro. The partners at PL 532 mentioned that they would assess the possibility of a tie-in of the discovery to the Johan Castberg field. While drilling the exploration well, oil was encountered in a new formation known as Tubåen. The water depth at the site is approximately 345 meters.
According to the Norwegian energy firm, the Barents Sea is one of the least explored regions in the Norwegian Continental Shelf. However, since the Johan Castberg field came online in March 2025, it opened up possibilities for new oil discoveries in the region. Vår Energi believes that despite the Barents Sea being a less explored region, it holds significant untapped reserves of oil and gas.
Continued Exploration in PL 532
The Johan Castberg field is expected to have a production life of 30 years, contributing to energy security in the region. According to EQNR, the field is estimated to have recoverable resources of approximately 450-650 million barrels. However, the company aims to raise the reserves at the field by 250-550 million barrels through continuous exploration and development efforts. Equinor plans to drill one or two exploration wells near the field annually.
EQNR’s Zacks Rank & Key Picks
EQNR currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the energy sector are Flotek Industries Inc. FTK, Subsea7 S.A. SUBCY and Oceaneering International OII. While both Flotek Industries and Subsea7 sport a Zacks Rank #1 (Strong Buy) at present, Oceaneering International carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Flotek Industries specializes in green chemistry, which provides innovative solutions aimed at reducing the environmental impact of the energy industry. Flotek develops specialty chemicals tailored for both domestic and international energy producers, as well as oilfield service companies. These chemicals not only help reduce the environmental impact of hydrocarbon production but also lower operational costs.
Subsea 7 helps build underwater oil and gas fields. It is a leading player in the global offshore energy industry and provides engineering, construction, and related services at offshore oil and gas fields. The long-term outlook for energy demand remains positive, and Subsea7’s focus on cost-efficient deepwater projects strengthens the position of its subsea business.
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.
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Oceaneering International, Inc. (OII): Free Stock Analysis Report Subsea 7 SA (SUBCY): Free Stock Analysis Report Flotek Industries, Inc. (FTK): Free Stock Analysis Report Equinor ASA (EQNR): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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