Company announces estimates on found oil; commits to more wells
The Henry Goodrich oil rig is seen in Mortier Bay in this Transcontinental Media file photo.
Statoil has announced it has found 100-200 million barrels of recoverable oil product at the so-called Mizzen area in the Flemish Pass Basin offshore Newfoundland and Labrador.
It is not a phenomenal amount. For comparison, estimated recoverable reserves at Terra Nova sit at 419 million barrels. Hebron reserves come in at 660-1,005 million barrels. Total reserves at Hibernia, recovered and recoverable, are estimated at 1.4 billion barrels.
That said, the oil reserves at Mizzen are just starting to be defined.
“We have proven there is a petroleum system in the area and that the Mizzen discovery has potential to create value for Statoil,” stated Erik Finnstrom, senior vice president of Statoil’s exploration in North America.
Even with resources already identified, “we are now assessing the discovery to determine how and when it can be economically developed,” he stated.
All of this means commitment for more work in the area by Statoil.
“Our focus is to define the resource potential of the Flemish Pass Basin by continuing to test high-impact oil prospects on our land holdings and to continue to build this area as a core exploration region for the company. From 2012 to 2013, we will drill two new wildcat wells in the area and potentially additional wells in 2014 and beyond.”
Statoil discovered oil in 2009, drilling Mizzen O-16 (a well at the Mizzen area), about 500 kilometres offshore Newfoundland. Another well went in 2011. Any detail on what was found has been kept close to the chest by the company until now.
The Mizzen area is a deep-water site — with well at a water depth of about 1,100 metres.
Statoil holds a Significant Discovery License for Mizzen from the Canada-Newfoundland and Labrador Offshore Petroleum Board. Statoil (with 65 per cent stake) is partnered with Husky Energy on Mizzen F-09.
Statoil is also a partner in the Hibernia and Terra Nova producing fields as well as in the development of the Hebron and Hibernia Southern Extension fields.