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How does the discovery of wells of crude oil affect to oil companies’ actions?

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It is been less than two weeks since the oil company Repsol announced the greatest discovery of wells of crude oil in the United States in the last 30 years. That is how this finding has affected the Spanish group.

24 march 2017

With a extraction potential up to 12,000 millions of barrels of crude oil. These are the two wells that the oil company Repsol along with its company member Armstrong Energy has recently found in the state of Alaska; the greatest crude oil finding since 2009. With a new like that, the Spanish group has received positive stock-market repercussions, as we will see. 

 

Upturn and consolidation of the stock market.

The first minutes of the Friday 10 March in the stock market, titles like Repsol counted with a rise in share prices around 3% until the actions will cost 14.48€, a day after the company oil communicated to the National Securities Market Commission (CNMV) its discovery of crude oil. The possibility to quickly exploit the wells in this oil reserve, regardless of the found huge volume, has provoked that the market has valued favourably this finding. Repsol is planning to start extracting this “black gold” in 2021.

The Spanish oil company has been consolidated in the stock market in the last year after experiencing a rise of 41% after this crude oil finding and the recovery of the barrel’s price.

 

Particularly, in the well Horseshoe-1 a 46 meter oil plume has been found while in Horseshoe-1A it was a crude oil plume of 30 meters. This discovery along with the recovery of the barrel’s price has resulted in Repsol consolidating in the last year a rise in the stock market up to 14%. So far this year, in the last 3 months, the titles of the oil company have increased 7,49%, which are more significant numbers.

These are great news for stockholders of the Spanish oil company that are experiencing how the Spanish group is consolidated with a constant rise in the stock market, which creates great expectations in the market.

 

 

 
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