NLIS 3
October 1, 2003
(Mines and Energy)

 

Minister says new reserves near White Rose good news for offshore

Mines and Energy Minister Walter Noel says additional reserves of oil and gas discovered at the southern end of the White Rose oil field bode well for the White Rose oil project and for the province�s offshore in general.

On September 30, Husky Energy announced the results of two delineation wells known as White Rose F-04 and F-04Z. Reserves are estimated at 200-250 billion cubic feet of natural gas and 60-90 million barrels of oil-in-place. This could increase the amount of recoverable light oil for the White Rose project by 20-30 million barrels.

"This is exciting news for our offshore industry," said Minister Noel. "It could lengthen the life of the White Rose project, and add to the province�s economic return. Royalty revenues are calculated both on the value of oil produced, and on project profitability. Both factors would be expected to increase due to the production of additional reserves.

"In addition, the new reserves of natural gas will enhance the potential for long-term gas development on the Grand Banks.

"Furthermore, this find confirms our belief that there are significant reserves of oil and gas still to be discovered off our shores. Newfoundland and Labrador boasts more than 700,000 square kilometres of geological formations with hydrocarbon potential. We hope these positive drilling results will serve as a catalyst for petroleum companies to engage in additional exploration, and continue to make these important discoveries."

Media contact: Deborah Collins, Communications, (709) 729-5823

2003 10 01                                       3:15 p.m.


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