Successful wells bring some joy into a miserable day in the markets

Statoil (40%) as the operator and partners Petoro AS (30%), Det norske oljeselskap’s (OSE: DETNOR) (20%) and Lundin Norway AS (part of Lundin Petroleum AB (STO:LUPE))(10%) made a high-impact oil discovery on the Aldous Major South prospect (PL 265) in the North Sea. The reservoir is of excellent quality and preliminary volumes are estimated 200-400 million barrels of oil equivalent for this part of the prospect. Statoil estimates further upside adjacent to the discovery.

Lundin Petroleum estimates that the discovery is most likely an extension of the Avalsdnes discovery made by Lundin Petroleum in PL501. Together the discoveries may allow for a new stand-alone development in the North Sea. Markets had high hopes for the project as it was described as high-impact in prior investor meetings.

Total E&P Norge AS as operator.made a gas discovery at Norvarg prospect in the Barents Sea. North Energy ASA (OSE:NORTH),(20%) RockSource (OSE:RGT) (20%) and DETNOR (20%) are the partners in the license. Preliminary estimates indicate potential from 10 to 50 billion cubic metres of recoverable gas corresponding to between 63 and 315 million barrel of oil equivalents.

DETNOR’s stock benefited the most from being a part of both of the discoveries and was up nearly 15% for the day. The company said that Norvarg may represent significant value. Other public companies mentioned here were down with the rest of the market.