Natural Resources
October 27, 2010Growing
Industry Interest in Western Newfoundland Oil and Gas
Leads to Call for Postings
The Government of Newfoundland and Labrador today
issued a Call for Postings to identify prospective parcels of land in
onshore western Newfoundland for possible future oil and gas
exploration. The decision comes after consultations with industry
through the Western Newfoundland Region Working Group, a group first
established upon release of the Energy Plan: Focusing Our Energy.
"We believe the current exploration activity and
interest in participating in the western Newfoundland region speaks
volumes to the undiscovered hydrocarbon potential in the area," said the
Honourable Kathy Dunderdale, Minister of Natural Resources. "Buoyed by a
mixture of existing and new players including Nalcor Energy — Oil and
Gas, our province is experiencing record levels of exploration activity
in our west coast basins with over $50 million invested over the past
three years. We only expect this interest to grow as we continue to
obtain important geoscientific information outlining the region's
promising potential."
The Call for Postings is the first stage in the oil
and gas licensing process. It allows interested companies to nominate
lands they believe have high petroleum prospects. Once the Provincial
Government has had the opportunity to assess all the nominations, the
Minister of Natural Resources may then decide to issue a formal Request
for Bids. In response to a Request for Bids, companies compete to obtain
permits which grant them the legal authority to explore for petroleum
resources.
Approximately seven million acres of land, totaling
28,000 square kilometres will be open for nomination. Areas include the
Bay St. George, Anticosti and Deer Lake Basins, where exploration is
currently underway. Unexplored basins such as the Howley Basin and the
onshore part of the St. Anthony Basin will also be included.
Companies may express interest in nominating lands to
the Department of Natural Resources. The deadline for submissions is
December 15, 2010 by 4:00 p.m. Further information on the Call for
Postings is available at
www.nr.gov.nl.ca/mines&en/oil/callforpostings.pdf
"Our government sees a future for the development of
an oil and gas sector in western Newfoundland which will facilitate
continued regional economic growth and development," said Minister
Dunderdale. "As we assess the nominations, we will do so in a manner
that will benefit the residents and businesses on the west coast and
continue the strong growth we have seen in this region."
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