Statoil Confirms Significant Oil Find Offshore Canada

Statoil Confirms Significant Oil Find Offshore Canada

Statoil and its partner Husky Energy have made a significant oil discovery offshore Canada, the Norwegian oil major confirmed Thursday. Statoil said its first Bay du Nord exploration well has found is between 300 and 600 million barrels of recoverable oil.

Although Bay du Nord was originally discovered in August a sidetrack well was completed this week, confirming a high-impact discovery. The oil is light, with API gravity at 34 degrees, and exists in "excellent" Jurassic reservoirs with high porosity and high permeability, Statoil said. Additional prospective resources have also been identified.

The Bay du Nord discovery – located approximately 300 miles northeast of St John's, Newfoundland and Labrador – is Statoil’s third discovery in the Flemish Pass Basin. The Mizzen discovery (announced in 2010) is estimated to hold between 100 and 200 million barrels of oil, while the Harpoon discovery (announced in June) is still under evaluation.

Statoil Exploration Executive Vice President Tim Dodson commented in a company statement:

"It is exciting that Statoil is opening a new basin offshore Newfoundland. This brings us one step closer to becoming a producing operator in the area.

"With only a few wells drilled in a large licensed area, totalling about 8,500 square kilometres [3,250 square miles], more work is required. This will involve new seismic as well as additional exploration and appraisal drilling to confirm these estimates before the partnership can decide on an optimal development solution in this frontier basin."

Statoil is the operator of Mizzen, Harpoon and Bay du Nord with a 65-percent interest. Husky has a 35-percent stake.

Statoil is also involved in the Canadian Arctic with Chevron as its partner.

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