Statoil discovers up to 600 MMbbl of oil offshore Canada


Statoil discovers up to 600 MMbbl of oil offshore Canada


OSLO -- Statoil said it had discovered up to 600 MMbbl of recoverable oil offshore Canada, its third discovery in a potential new core production area.

The Bay du Nord discovery in the Flemish Pass Basin was first announced in August, but the company said a sidetrack well drilled this week had confirmed that the find was significant. The size was estimated at between 300 and 600 MMbbl of recoverable oil.

It is exciting that Statoil is opening a new basin offshore Newfoundland, said Tim Dodson, Statoil's EVP for exploration. "This brings us one step closer to becoming a producing operator in the area."

The company said the Flemish Pass had the potential to become a core producing area for Statoil after 2020.

Statoil previously made the Mizzen discovery in the same area, expected to hold 100 to 200 MMbbl of recoverable oil, and the Harpoon discovery, which is still under evaluation.

The Bay du Nord find is situated 500 km northeast of St. John's, Newfoundland. The oil was of a light crude quality, and the reservoir was excellent, with high porosity and high permeability, Statoil said.

The company has only drilled a few wells in a large license area of about 8,500 sq km, and was preparing to do more seismic surveys and drill more appraisal wells to confirm the estimates.

Statoil is the operator of Mizzen, Harpoon and Bay du Nord with a 65% ownership stake. Husky Energy has a 35% stake.

Dow Jones Newswires

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