Natural Resources
June 10, 2016
Strategic Oil and Gas Exploration in Newfoundland and Labrador
Offshore Exploration Program Shows Positive Results
Today's announcement by Statoil, providing results of its offshore exploration program, is good news for Newfoundland and Labrador as it confirms the presence of hydrocarbons in the Baccalieu and Bay de Verde prospects in addition to the Bay du Nord, Harpoon and Mizzen discoveries.
"The discovery of oil in the Baccalieu prospect demonstrates how nimble and responsive our offshore can be when we work together. Statoil was issued an exploration licence in January 2016, began drilling a well in March, and has already announced the discovery of oil. Statoil will now review the information gathered in its drilling program and will assess the geology. We look forward to their analysis."
- The Honourable Siobhan Coady, Minister of Natural Resources
In the Flemish Pass Basin, 13 exploration well tracks have been drilled and five oil discoveries have been announced, including Mizzen, Harpoon, Bay du Nord, Bay de Verde and Baccalieu. This is an impressive success ratio for a frontier basin.
Statoil is playing a significant role in the development of Newfoundland and Labrador's offshore oil industry. The province's resource potential is significant and long term. There is much work ahead in exploration and development by Statoil and other companies working offshore.
Offshore Newfoundland and Labrador is considered one of the best frontier regions in the world today with over 20 basins, significant new basin areas, and over 350 leads and prospects defined to date from new seismic work.
New geoscience data and the province's new land tenure system are enabling industry to significantly shorten the lead time required to identify and drill prospects.
The Canada-Newfoundland and Labrador Offshore Petroleum Board (C-NLOPB) has issued two Calls for Bids under the scheduled land tenure regime in the Canada-Newfoundland and Labrador Offshore Area which closes in November 2016.
The Provincial Government, in partnership with Nalcor, is well underway with an independent resource assessment for new blocks in the Eastern Newfoundland Region. The results of this resource assessment will be issued publicly ahead of the closing of the licence round.
QUICK FACTS
- Today's announcement by Statoil, providing results of its offshore exploration program, is good news for Newfoundland and Labrador as it confirms the presence of hydrocarbons in the Baccalieu and Bay de Verde prospects in addition to the Bay du Nord, Harpoon and Mizzen discoveries.
- Statoil was issued an exploration licence in January 2016, began drilling a well in March, and has already announced the discovery of oil in the Baccalieu prospect.
- Modern seismic data and interpretation techniques along with publicly released well results have indicated multiple aged formations are prospective in the Flemish Pass.
- The Provincial Government is encouraged by the amount of new seismic data being acquired in the offshore region including additional 3D data in a large program for this year.
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Media contact:
| Diana Quinton
Director of Communications Department of Natural Resources 709-729-5282, 631-8155 dianaquinton@gov.nl.ca |
2016 06 10 3:05 p.m.