Statoil (NYSE: STO) Makes Offshore Discovery
Statoil Canada and Husky Energy have announced the discovery of 300-600 million barrels of recoverable oil at their Bay du Nord exploration well. Originally announced in August, the discovery is located 500 killometers northeast of St. John’s Newfoundland and Labrador, Canada and is Statoil’s third find in the Flemish Bass Basin. The Bay du Nord discovery is now estimated to be three times the size of the company’s Mizzen discovery which is assumed to hold between 100-200 million barrels. Statoil’s Harpoon discovery from June is still under appraisal, with volumes yet to be announced.
The volume of these discoveries is promising for Statoil’s developing position in the Flemish Pass. The company has 8,500 square miles licensed in the area. With just three wells drilled, there is plenty more room left for expansion. The Flemish Pass will potentially become a core producing area for Statoil after 2020. The company is up 1.6% premarket.
Solar Investment Abroad
This week, we learned that France will implement a new tax on both nuclear energy and carbon emissions in an effort to fund renewable energy developments. Currently, the country relies on nuclear for the bulk of its power. This all translates to an increased cost of conventional French power sources, as well as an emergence of renewable energy plays. If you’re looking for more information on these opportunities, click here.