Equinor (EQNR) to Drill Additional Well in Heisenberg Discovery
Equinor ASA EQNR, the Norwegian energy firm, has received a permit from the Norwegian Offshore Directorate to spud an exploration well in the UK North Sea. The additional exploration well will be drilled in the Heisenberg discovery, offshore Norway.
The well, identified as 35/10-13 S and named “Angel”, is part of production license (PL) 827 SB. The drilling operation will be carried out by the Deepsea Atlantic semisubmersible rig. The rig, owned by Odfjell Drilling, can operate in water depths of up to 3,000 meters and has a maximum drilling depth of 10,670 meters.
In March 2024, Equinor and DNO Norge conducted further exploration and delineated the Heisenberg oil and gas discovery, which is also part of the same production license. PL 827 SB is operated by Equinor, which holds a 51% stake, while DNO Norge owns the remaining 49%.
The Heisenberg discovery is estimated to hold recoverable volumes of 24-56 million barrels of oil equivalent (MMboe). While drilling the appraisal well for the Heisenberg discovery, the two companies also encountered hydrocarbon-bearing sands in a secondary target, referred to as Hummer. Furthermore, Equinor plans to drill another well in the second quarter of 2024 to study a deeper prospect named Angel, alongside extending its exploration of the Heisenberg discovery toward the west.
The Heisenberg discovery is located close to several significant North Sea hubs and within tie-back range. The close proximity of the Heisenberg discovery to other discoveries where DNO Norge is involved, such as the Carmen discovery, facilitates its fast development.
Zacks Rank and Key Picks
Currently, EQNR carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the energy sector are Archrock Inc. AROC, SM Energy SM and Hess Midstream Partners LP HESM. Archrock presently sports a Zacks Rank #1 (Strong Buy), while SM Energy and Hess Midstream carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
Archrock is an energy infrastructure company based in the United States, with a focus on midstream natural gas compression. It provides natural gas contract compression services and generates stable fee-based revenues.
SM Energy is an upstream energy firm operating in the prolific Midland Basin region and the South Texas region. For 2024, the company expects its production to increase from the prior-year reported figure, signaling a bright production outlook.
Hess Midstream owns, operates, develops and acquires a wide range of midstream assets, providing services to Hess Corporation and other third-party customers. The partnership has a stable fee-based revenue model secured via long-term commercial contracts. Since Hess Midstream operates through 100% fee-based contracts, it is exposed to minimal commodity price risks.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
SM Energy Company (SM) : Free Stock Analysis Report
Archrock, Inc. (AROC) : Free Stock Analysis Report
Hess Midstream Partners LP (HESM) : Free Stock Analysis Report
Equinor ASA (EQNR) : Free Stock Analysis Report
