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Statoil ASA (STO) made a serious oil discovery recently in the Barents Sea. The company announced that they found approximately 500 million barrels of oil. Norwegian officials belief that this discovery could dramatically impact the current state of the country, and possibly even pull them out of their current long term decline. This is a major find that could also dramatically effect companies who are linked to Norway, or the other companies involved.

Statoil ASA is trading around $29.26. Statoil is a leading oil and gas company, based in Norway. These shares have traded in a range between $18.39 to $29.59 in the last 52 weeks. The 50 day moving average is $26.16 and the 200 day moving average is $22.56. STO is estimated to earn about $2.93 per share in 2011 and $3.30 in 2012.

What might make STO a solid investment: As of December 31, 2010, Statoil had proved reserves of 2,124 million barrels of oil, as well as 509 billion cubic meters of natural gas, corresponding to aggregate proved reserves of 5,325 million barrels-of-oil equivalent. Statoil also operates over 2,200 fuel stations. This new discovery is significant for STO, and it is likely that this company will continue to make additional finds in the Barents Sea. These shares are trading above their moving averages, so I would wait for pullbacks. However, compared to many other names, this one is undervalued at about 10 times earnings, and it pays a solid dividend of 78 cents per share which is equivalent to a 2.7% yield.

Read the entire article here: http://turnkeyoil.com/2011/04/19/500-million-oil-barrel-discovery-in-norway/