NWest Applies for Exploration Licenses Offshore Newfoundland
NWest has applied to the Canada-Newfoundland and Labrador Offshore Petroleum Board ("C-NLOPB") to consolidate the company's four Exploration Licenses 1097, 1098, 1103 and 1104 situated offshore western Newfoundland.
The consolidation application will require final approval from both the C-NLOPB and both provincial and federal Ministers.
The proposed Exploration License consolidation will allow for the option to extend the Period 1 of the consolidated license and for the Company to focus specifically on the near shore development of the Green Point oil shale unconventional resource across all four licenses. The Green Point shale is the proven oil source rock in the region. The recent AJM Petroleum Consultants Report ("AJM Report") provided a Best Estimate (P50) Undiscovered Petroleum Initially-in-Place Resource Best Estimate of 18.8 billion barrels.
As part of the exploration license consolidation, NWest will be relinquishing some offshore acreage to maintain the acreage underlain by the Green Point shale. The consolidated near shore acreage will allow for the unconventional potential to be tested by drilling from onshore locations.
NWest is evaluating their joint venture options regarding further exploration and determination of resource potential. The Green Point unconventional resource exploration program is at an early stage; significant work is required to determine the potential for commercially viable resource recovery.