Provincial Government Welcomes Announcement of Mizzen Discovery

Statoil’s announcement that it has found between 100 and 200 million barrels of recoverable reserves at its Mizzen discovery in the Flemish Pass Basin provides a solid basis for future exploration in Newfoundland and Labrador’s offshore.

“Statoil’s announcement today is the first announced discovery volume since North Amethyst, and indicates that there is an active petroleum system outside the Jeanne d’Arc Basin where all the province’s producing fields are located,” said the Honourable Jerome Kennedy, Minister of Natural Resources. “Although it is early to determine if it is economically viable to develop, our government is optimistic that this will help to encourage increased investment and exploration in the largely unexplored regions of our province’s offshore.”

The Mizzen discovery is situated in the deepwater area of the Flemish Pass Basin with water depths of about 1,100 metres, approximately 500 kilometres east-north-east of St. John’s. Proof of an active petroleum system could help de-risk other potential prospects in the basin and has led to the acquisition of additional seismic data, and Statoil’s plan to drill an additional two exploration wells later this year.

“This is the first discovery of reserves in the province’s deepwater region, and it is encouraging that Statoil will further pursue this discovery,” said Minister Kennedy. "We are optimistic that this discovery will lead to further oil and gas activity in Newfoundland and Labrador, and ensure sustainable economic industry growth.”

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Media contact:
Heather Maclean
Director of Communications
Department of Natural Resources
709-729-5282, 697-4137
heathermaclean@gov.nl.ca 

2012 06 20             5:50 p.m.