Equinor Hits a Dry Spell With Two North Sea Exploration Wells

Equinor ASA EQNR has hit a dry spell in its latest North Sea exploration efforts. Two wells drilled with Odfjell Drilling’s Deepsea Stavanger semi-submersible rig off the coast of Norway failed to uncover hydrocarbons. These wildcat wells, identified as 35/10-14 S and 35/10-14 A, also known as the Kvernbit/Mimung, marked the first exploratory activities within production license 1185, awarded in 2023.Equinor, holding a 40% stake in the license, operates it alongside partners Vår Energi, Sval Energi and Aker BP, each holding a 20% share. The drilling aimed to target petroleum in Upper and Middle Jurassic reservoirs in the Kvernbit and Mimung prospects, as well as in the Lower Jurassic Cook Formation. Despite extensive data acquisition and core sampling, reservoir properties in the drilled formations proved poor.The well 35/10-14 S, drilled to depths of 4,885 meters vertically and 4,925 meters measured, terminated in the Johansen Formation. It encountered over 80 meters of sandstone in the primary exploration target but with subpar reservoir quality. The secondary target, the Cook Formation, also revealed 77 meters of sandstone layers with poor properties.Similarly, well 35/10-14 A, drilled to depths of 4,275 meters vertically and 4,710 meters measured, terminated in the Rannoch Formation of the Mid Jurassic. It encountered 163 meters of sandstone across multiple formations, including the Tarbert, Ness, Etive and Rannoch, but reservoir quality remained disappointing.While these results were a setback for Equinor, the company recently succeeded in the Norwegian North Sea, uncovering oil and gas in a region known for prior commercial discoveries. This success came with the assistance of another rig from Odfjell Drilling’s fleet, offering a silver lining to the energy giant’s ongoing exploration endeavors.EQNR’s Zacks Rank & Key PicksEQNR currently carries a Zacks Rank #3 (Hold).Investors interested in the energy sector may look at some better-ranked stocks like TechnipFMC plc FTI, Oceaneering International, Inc. OII and Nine Energy Service NINE. While TechnipFMC presently sports a Zacks Rank #1 (Strong Buy), Oceaneering and Nine Energy carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.TechnipFMC is a leading manufacturer and supplier of products, services and fully integrated technology solutions for the energy industry. It focuses on the subsea segment in offshore basins worldwide. FTI’s growing backlog ensures strong revenue visibility and supports margin improvements.Oceaneering International delivers integrated technology solutions across all stages of the offshore oilfield lifecycle. With a geographically diverse asset portfolio and a balanced revenue mix between domestic and international operations, the company effectively mitigates risk. As a leading provider of offshore equipment and technology solutions to the energy sector, OII benefits from strong relationships with top-tier customers, ensuring revenue visibility and business stability.Nine Energy Service provides onshore completion and production services for unconventional oil and gas resource development. The company operates across key prolific basins in the United States, including the Permian, Eagle Ford, MidCon, Barnett, Bakken, Rockies, Marcellus and Utica, as well as throughout Canada. With a sustained demand for oil and gas in the future, the demand for NINE’s services is anticipated to increase, which should position the company for growth in the long run.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>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 TechnipFMC plc (FTI): Free Stock Analysis Report Oceaneering International, Inc. (OII): Free Stock Analysis Report Nine Energy Service, Inc. (NINE): Free Stock Analysis Report Equinor ASA (EQNR): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks