The Norwegian Continental Shelf is one of the key regions that Statoil (NYSE:STO) is targeting in its oil and gas exploration program, and the company plans to drill as many as 80 wells here over the next three years.

Investopedia Broker Guides: Enhance your trading with the tools from today's top online brokers.

Barents Sea
Statoil is active in the Barents Sea and has reported several successful discoveries here over the last year. In April 2011, the company found both oil and natural gas pay at the Skrugard prospect. The company estimated that Skrugard may contain recoverable resources between 150 million and 250 million barrels of oil equivalent (BOE). In March 2012, Statoil drilled a successful appraisal well at Skrugard and confirmed the potential of this prospect in the Barents Sea.

Statoil followed up its success at Skrugard with the Havis discovery, also in the Barents Sea. The Havis discovery added an additional 200 million to 300 million BOE of recoverable resources bringing the potential of this area to between 400 million and 600 million BOE of resources.

Statoil is hoping to continue this exploration success with the drilling of four more prospects in the Barents Sea. The company plans to drill the Nunatak, Skavl and Iskrystall wells along with a fourth unidentified prospect by the middle of 2013. Eni (NYSE:E) is also involved here on a non-operated basis and owns 30% of the Skrugard and Havis prospects.

SEE: A Guide To Investing In Oil Markets

North Sea
Statoil and its partners have reported several successful wells in the last two years at the Avaldsnes and Aldous prospects in the North Sea. This series of discoveries has been renamed Johan Sverdrup and will be a major target of Statoil over the next three years. The company plans to drill four appraisal wells and one exploration well on two separate license areas to delineate this large discovery further. Statoil estimates that the Johan Sverdrup may contain between 1.7 billion and 3.3 billion BOE of gross recoverable resources.

SEE: What Determines Oil Prices?

Statoil has additional exploration planned for the Norwegian Continental Shelf and obtained eight more licenses in April 2011. The company plans to drill eight to 12 exploration wells in the North Sea through 2014.

Other operators active in the North Sea include Total (NYSE:TOT), which found natural gas at the Norvarg prospect. The company plans to drill an appraisal well here in 2013. Marathon Oil (NYSE:MRO) is the operator of several producing fields in the North Sea and is currently developing the Boyla field. The company expects first oil here in 2014.

SEE: Oil And Gas Industry Primer

The Bottom Line
Statoil has a large exploration program planned through 2014 and is targeting many areas on the Norwegian Continental Shelf. The company hopes to generate long-term production growth from these and other prospects in its inventory.

Use the Investopedia Stock Simulator to trade the stocks mentioned in this stock analysis, risk free!

At the time of writing, Eric Fox did not own shares in any of the companies mentioned in this article.

Related Articles
  1. Investing

    The ABCs of Bond ETF Distributions

    How do bond exchange traded fund (ETF) distributions work? It’s a question I get a lot. First, let’s explain what we mean by distributions.
  2. Savings

    Easy Ways to Go Green and Stay Budget Friendly

    Social entrepreneurs recruit "skeptics" to team green, by providing economically efficient products and services that minimize consumers' carbon footprint.
  3. Investing

    Top Investment Banks In The Energy Industry

    Many global Investment banks are highly involved in the energy industry, but there are also some smaller banks and boutiques that are strong players.
  4. Stock Analysis

    3 Stocks that Are Top Bets for Retirement

    These three stocks are resilient, fundamentally sound and also pay generous dividends.
  5. Investing News

    Are Stocks Cheap Now? Nope. And Here's Why

    Are stocks cheap right now? Be wary of those who are telling you what you want to hear. Here's why.
  6. Investing News

    4 Value Stocks Worth Your Immediate Attention

    Here are four stocks that offer good value and will likely outperform the majority of stocks throughout the broader market over the next several years.
  7. Investing News

    These 3 High-Quality Stocks Are Dividend Royalty

    Here are three resilient, dividend-paying companies that may mitigate some worry in an uncertain investing environment.
  8. Stock Analysis

    An Auto Stock Alternative to Ford and GM

    If you're not sure where Ford and General Motors are going, you might want to look at this auto investment option instead.
  9. Stock Analysis

    The 6 Biggest Russian Energy Companies

    Learn about the top energy companies in Russia, a country that holds some of the largest reserves of oil, natural gas and coal in the world.
  10. Mutual Funds & ETFs

    The 4 Best Buy-and-Hold ETFs

    Explore detailed analyses of the top buy-and-hold exchange traded funds, and learn about their characteristics, statistics and suitability.
  1. How do dividends affect retained earnings?

    When a company issues a cash dividend to its shareholders, the retained earnings listed on the balance sheet are reduced ... Read Full Answer >>
  2. What is the difference between called-up share capital and paid-up share capital?

    The difference between called-up share capital and paid-up share capital is investors have already paid in full for paid-up ... Read Full Answer >>
  3. Why would a corporation issue convertible bonds?

    A convertible bond represents a hybrid security that has bond and equity features; this type of bond allows the conversion ... Read Full Answer >>
  4. What types of capital are not considered share capital?

    The money a business uses to fund operations or growth is called capital, and there are a number of capital sources available. ... Read Full Answer >>
  5. How does additional paid in capital affect retained earnings?

    Both additional paid-in capital and retained earnings are entries under the shareholders' equity section of a company's balance ... Read Full Answer >>
  6. What is the difference between issued share capital and subscribed share capital?

    The difference between subscribed share capital and issued share capital is the former relates to the amount of stock for ... Read Full Answer >>

You May Also Like

Trading Center
You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!