News Releases
Government Home Search Sitemap Contact Us  


December 4, 1996
(Mines and Energy)


The following statement was issued today by Rex Gibbons, Minister of Mines and Energy. It was also read in the House of Assembly:

It is my pleasure today to inform the Members of the House of Assembly that Amoco Canada Petroleum Company Ltd. has confirmed that it will drill at least one well on the Grand Banks in 1997. In May 1997, Amoco will commence drilling the West Bonne Bay prospect, located 15 km northeast of the Terra Nova oilfield. The drilling of this one well will employ approximately 200 people for about three months.

This well, will be drilled on land for which Amoco bid more than $90 million in work commitments in 1995. This was the largest single bid for an individual land parcel in the province's history. Obviously Amoco, a major international player in the oil industry, sees tremendous potential on these lands, and with success will very likely drill more than one well.

I am more than pleased to welcome Amoco, who with Imperial Oil was one of the original explorers on the Grand Banks in the 1960s, back to the east coast after so many years, and wish them every success.

Let me also say that I believe that the return of Amoco, combined with the record high bids in recent offshore land sales, signals a turning point in exploration on the Grand Banks.

Bob Erickson, Chairman and President of Amoco Canada is quoted in a news release yesterday as saying, "The East Coast's ongoing infrastructure activity, complemented by Newfoundland's royalty announcement last June, provides better certainty for these types of exploration ventures."

With renewed exploration, I am confident that we will see the discovery and delineation of other major fields to follow on the heels of Hibernia and Terra Nova.

1996 12 04   2:10 p.m.

SearchHomeBack to GovernmentContact Us


All material copyright the Government of Newfoundland and Labrador. No unauthorized copying or redeployment permitted. The Government assumes no responsibility for the accuracy of any material deployed on an unauthorized server.
Disclaimer/Copyright/Privacy Statement