Oil and natural gas exploration efforts in Canada have seen a great deal of success lately, with Statoil ASA making a series of major discoveries near the shores of Newfoundland.
Statoil Makes Canada Discovery
Statoil ASA recently announced its third major discovery in Canada’s Flemish Pass region, an area located just off the shore of Newfoundland. The reserves were found after Statoil drilled into the Bay du Nord, which is located about 500 kilometers from St. John’s, Newfoundland. Statoil discovered oil just months before at its Harpoon prospect 10 kilometers north of the Bay du Nord, and in 2012 it found oil in its Mizzen well, also located in the Flemish Pass region. While the discovery in the Mizzen is estimated to hold between 100 and 200 million bbl of oil, the other two findings are still being evaluated.
To evaluate the potential of these new discoveries, Statoil is using proprietary seismic techniques. Erik Finnstrom, Statoil’s Senior Vice President of Exploration for North America, announced that the most recent discovery is expected to be large, although its full potential won’t be known for some time. According to Statoil Executive Vice President Tim Dodson, the new discoveries are encouraging, and the company is making plans to continue its oil and natural gas exploration efforts in the area. “The Flemish Pass basin is a strategic part of Statoil’s global exploration portfolio,” Dodson said. “We are now planning to return to the area for further appraisal drilling in the future.” Prior to these discoveries, Statoil focused primarily on exploration efforts in the Gulf of Mexico and in Norway, but “with the Bay of du Nord discovery, we now have the makings of a core position in Canada,” Finnstrom said.
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