Shell To Explore Offshore Nova Scotia

Shell Canada Ltd. plans to spend between $60 million and $65 million to drill an exploration well for natural gas off Nova Scotia's Sable Island early next month. The Onondaga prospect, 100 percent owned by Shell, will be explored by the Santa Fe's jackup, Galaxy II, beginning November 1 and lasting approximately four months.

The project is a revival of the first discovery of natural gas made in Nova Scotia in 1969. The rig will be working in approximately 200 feet of water and about 13 miles south of existing natural gas production facilities off Sable Island. When the exploration wells were originally drilled, the Onondaga prospect was considered a failure because natural gas, rather than oil, was found.