I rise today to update the House on the three-well exploratory drilling program led by Nalcor Energy — Oil and Gas at Parson's Pond on the province's west coast.

The objective of this program is to provide us with a greater understanding of the region's geological makeup to assist us in unlocking its petroleum potential.

I am pleased to report that the first well in Nalcor's drilling program has reached its total drilling depth of 3,160 metres. This represents the deepest well ever drilled in Western Newfoundland.

Nalcor Energy — Oil and Gas encountered gas during drilling, which is an encouraging sign of a petroleum system. The next step is to complete the necessary testing to determine flow characteristics and overall potential volumes. Drilling will begin this summer on the program's second well.

Nalcor Energy — Oil and Gas has also received approval from the Environmental Review Process related to its third well, and is making the appropriate adjustments to its drilling schedule to accommodate the attached conditions.

In partnership with our west coast players, including Leprechaun Resources, Deer Lake Oil and Gas, Vulcan Minerals and Investcan, our government is working diligently to promote the oil and gas sector in this region. Over $1.6 million has been directly invested in local and provincial goods and services through Nalcor Energy as a result of this program. These include site and road construction and maintenance; heavy equipment for the rig move and ongoing operations support; diesel fuel for operations; waste management; trucking and brokerage services; well site geology and safety consulting, as well as local accommodations and meals. The majority of rig crews employed on this program are also from the Great Northern Peninsula.

The progress being made in Parson's Pond and the economic and employment opportunities it has provided is only the beginning of what we all hope will be a very successful oil and gas industry in this region.

Our government and Nalcor Energy — Oil and Gas are taking a leadership role in Western Newfoundland. The initial indicator of a petroleum system in this well more than justifies the risk in financing this exploration program.

This program is consistent with the principles of our Energy Plan and it will help us to achieve our goals for successful resource development on the west coast.