Exciting Oil Discovery Confirmed in Bay du Nord Exploration Well

Earlier today, partners Statoil Canada and Husky Energy announced that between 300 and 600 million barrels of oil recoverable has been discovered in the Bay du Nord exploration well, located in the Flemish Pass Basin offshore Newfoundland, approximately 500 kilometres northeast of St. John's.

“The discovery of oil in the Flemish Pass Basin is a game changer for Newfoundland and Labrador,” said the Honourable Tom Marshall, Minister of Natural Resources. “It proves there is oil in our province’s deepwater basins and it will encourage increased offshore exploration activity. This is one of the largest conventional oil fields to be discovered offshore Canada. We congratulate Statoil Canada and Husky Energy on their tremendous work in this area and their commitment to resource development in Newfoundland and Labrador’s offshore.”

The Bay du Nord discovery was first announced in August and follows the discovery of light oil at Harpoon in June 2013 and the discovery of slightly heavier oil at Mizzen in 2009. The three discoveries are located in close proximity to each other in about 1,100 metres of water. Together, these discoveries confirm significant opportunity in the Flemish Pass Basin.

The Provincial Government is committed to encouraging exploration in frontier areas and is investing in geoscience, marketing, and updating the land tenure system to attract more interest and players.

“Exploration is the first step towards new discoveries,” said Minister Marshall. “Our province’s undiscovered resource potential in the Flemish Pass Basin and other prospective offshore areas will help to contribute to the continued growth of our province’s oil and gas sector and ensure long-term sustainability.”

The offshore petroleum industry is the largest contributor to the provincial GDP at 33 per cent with an oil production value of over $8 billion and royalty revenues of $2 billion in 2012.

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Media contact:
Diana Quinton
Director of Communications
Department of Natural Resources
709-729-5282, 631-8155
dianaquinton@gov.nl.ca 

2013 09 26                                     11:05 a.m.