February 3, 1999
(Mines and Energy)

Minister comments on most recent Hibernia milestone

Roger Grimes, Minister of Mines and Energy, says he is pleased with Hibernia's announcement earlier today that it has increased oil production to more than 100,000 barrels a day after start-up of a new gas injection well. "Gas injection is another major milestone in the development of the Hibernia field and an important step in the continued development of the province's petroleum industry," the minister said.

"Gas injection provides the means to store our natural gas resources until such time as they can be brought to market. We look forward to the day that this gas will be brought ashore and we become an oil and gas producing province," says Minister Grimes.

Minister Grimes stated: "At present we have some four trillion cubic feet of natural gas discovered on the Grand Banks and another 4.2 trillion offshore Labrador. We expect to see a lot more gas and oil being discovered throughout our offshore area with further exploration. Companies have already begun inquiring about the possibility of developing our natural gas resources and we welcome any initiative that results in timely development of our resources."

Gas injection also has two other very important benefits for the province and the proponents of the Hibernia field including reduction of emissions from the platform and enhanced oil recovery. Gas injection has the positive environmental effect of significantly reducing emissions from flared gas into the atmosphere. As a signatory to the Kyoto Protocol, Canada agreed to reduce greenhouse gas emissions to six per cent below 1990 levels in the period 2008-2012.

The re-injection of gas into the field could enhance oil recovery from Hibernia by upwards to 65 million barrels. "Enhanced oil recovery has an upside from the province's point of view," said Minister Grimes. "Increased oil recovery means greater profitability for the project and more royalties for the province."

Media contact: Carl Cooper, Communications, (709) 729-4890.

1999 02 03 4:05 p.m.