On Sept 26 the Norwegian oil company Statoli ASA ($STO) struck a major find in the Bay du Nord field off the coast of Newfoundland, discovering between 300 and 600 million barrels of oil. The find has emboldened the company to seek more oil off the coast of Canada to join Bay du Nord and three producing wells currently operating in the area.
The oil driller might need some time to assess the exact magnitude of the strike, as the winter ice that is beginning to accumulate in the North Atlantic Ocean is beginning to coalesce. But early estimates indicate the find is indeed a major one, and a huge boon to Statoil’s Canadian exploration project. Statoil Canada Exploration vice-president Geir Richardsen called the strike “among the 12 biggest discoveries (in the world) over the last three years.”
The strike was made in conjunction with Canadian company Husky Energy Inc., 300 miles off the coast of Newfoundland, in an area called the Flemish Pass Basin.
Looking to capitalize on the region, Statoil has already made plans to expand their search in the Flemish Pass Basin. A company exec said the Bay du Nord strike brings the company "one step closer to being a producing operator in the area."
On Sept 6 Statoil also scored a major find in the Barents Sea of the coast of Russia. That exploration project has been less fruitful than their Canadian gambits, and was the first major strike in 11 tries off the Russian coast.
Statoil dropped .30 on the day to hit $22.93 a share.
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