StatoilHydro Canada�s exciting discovery in the Flemish Pass Basin,
approximately 500 kilometres east north-east of St. John�s, is a
testament to the undiscovered potential that exists in the province�s
offshore deepwater region and it bodes well for future exploration
activity and further discoveries.
Newfoundland and Labrador�s three producing oil fields � Hibernia,
Terra Nova and White Rose �
are all situated in the Jeanne D�Arc Basin, making the discovery
StatoilHydro announced this morning the first discovery outside of
this basin.
"It is too early to determine the commercial viability of the
hydrocarbon accumulation, however, we are excited at the prospects and
optimistic that this will lead to increased exploration and interest in
the deeper waters of our offshore," said the Honourable Kathy Dunderdale,
Minister of Natural Resources. "We look forward to working with the
company and to their commitment to the pursuit of our next big
discovery."
Today�s announcement is a result of a drill stem test that was
conducted during the drilling of StatoilHydro�s deepwater exploration
well Mizzen 0-16. StatoilHydro was operator of the well in Exploration
License (EL) 1049, with a 65 per cent interest, while Husky has the
remaining 35 per cent interest. Further work will be completed to
determine the size of the hydrocarbon accumulation. StatoilHydro Canada
also confirms it will submit an application for a Significant Discovery
Licence (SDL) to the Canada-Newfoundland and Labrador Offshore Petroleum
Board (C-NLOPB) within the next few months.
"Despite the current fluctuation of oil prices, we must remain
focused on continued exploration as it is the first step towards new
discoveries and ensuring a sustainable economic future in resource
development," said Minister Dunderdale. "Our undiscovered resource
potential in the Flemish Pass Basin and other areas will help contribute
to the continued steady growth of our oil and gas sector."
The unavailability of deepwater drill rigs capable of operating in
harsh environments continues to be an issue worldwide. In March 2008,
Husky and Petro-Canada secured a rig-sharing agreement with StatoilHydro
Canada, resulting in the Henry Goodrich, a semi-submersible drilling
unit, starting drilling last summer. The Henry Goodrich is expected to
remain in the province for 30 months.
StatoilHydro Canada is a partner in the Hibernia and Terra Nova oil
fields, as well as a partner in the Hebron development. Husky operates
the White Rose field and is also a partner in the Terra Nova field.
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