Greenland Awards Offshore Exploration License

The government of Greenland and the government of Denmark have approved the recommendation by the Joint Committee on Mineral Resources in Greenland of granting a new exploration and exploitation license for hydrocarbons to EnCana Corporation and Nunaoil A/S. The granting of the license is based on an application from EnCana in the 2002 licensing round. The license was signed by the Premier of Greenland and the companies on October 8, 2002 in Nuuk and is granted for ten years.

The license area covers 3.985 square kilometers and is located approximately 200 kilometers north west of Nuuk, offshore West Greenland. In terms of geology the area covers parts of the Nuuk Basin. In the westernmost part of the area the water depth roughly ranges from 500 and 1000 meters and in the eastern part between 200 and 500 meters. No wells have previously been drilled in the license area. EnCana is the operator of the license, and the Greenland based oil company Nunaoil A/S is a carried partner in the exploration phase.