When time, cost, and effort are spend much in locating and analyzing potential oil sources the firms can only hope the results be exemplary.
Fremont, CA: Oil discoveries are always welcome; be it for small, mid, or large scale oil companies that are always on the lookout for newer stocks. The market value keeps going up and down depending on the size of the discovery. The icing to the deals only remains filled if one has stock that can last for decades.
When time, cost, and effort are spend much in locating and analyzing potential oil sources the firms can only hope the results be exemplary. With the gulf nations grasping the flow and ebb of the oil trade around the world majorly, any new discoveries around other part of the world are always desirable. Here are some of the biggest discoveries made that can potentially affect the trade and perhaps change the industry layout.
Australian North West Shelf
For more than 15 years, oil exploration companies had been coming up empty from the Australian North West Shelf. Nearly everybody had given up the search in the offshore block. This is where partners Quadrant Energy and Carnarvon Petroleum hit paydirt in 2018, declaring it the best finds in decades.
The analysis of the find came up with an estimate of 171 million barrels of oil since 1996 – the last time when anyone came up above 100 million barrels. The news has garnered the block partners a 150 percent rise in stocks so far since 2018.
Namibia’s Eagle Ford
Owning a wilderness of land in the southern parts of Africa- like Namibia – may not be that much difficult for a couple of years for oil exploration. For Reconnaissance Energy Africa, it turned out much more than that however.
An initial analysis of the land discovered a shale basin that’s 25,000 square kilometers, similar in size to the Eagle Ford basin in Texas. Bill Cathey, the geoscientist with over 45 years of potential field acquisition, processing, and interpretation experience, was the first to confirm the same for them. Situated in the Namibia’s Kavango Basin, the location is a 30,000-foot sedimentary basin which has the potential to produce commercial hydrocarbons.
Reconnaissance has gained 90 percent interest in a 4-year exploration license leading to a 25-year production license starting on commercial discovery. The basin, which has similar depositional environment as Shell’s Whitehill Permian shale basin, has a potential to produce 12 billion barrels of oil or 119 trillion cubic feet of natural gas. The first wells are slated to be drilled in Q2 this year.
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