Side track proves high-impact oil in deepwater Bay du Nord offshore Canada

Statoil (OSE:STL, NYSE:STO) and co-venturer Husky Energy (TSX:HSE) are building a major oil reserves base offshore Newfoundland & Labrador.

Deepwater Bay du Nord offshore Canada
Deepwater Bay du Nord offshore Canada

Offshore staff

CALGARY, Canada – Statoil (OSE:STL) and co-venturer Husky Energy (TSX:HSE) are building a major oil reserves base offshore Newfoundland & Labrador.

Bay du Nord, their third discovery in theFlemish Pass basin, could hold 300-600 MMbbl recoverable, according to Statoil, while Husky’s best estimate of contingent resources is 400 MMbbl.

The semisubmersibleWest Aquarius drilled the well 500 km (310 mi) northeast of St. John’s, in 1,100 m (3,609 ft) of water. A side track well completed this week confirmed the magnitude of discovery, and further prospective resources have been identified.

Bay du Nord was drilled 20 km (12.4 mi) south of the Mizzen oil find, which could hold 100-200 MMbbl recoverable. Results from this June’sHarpoon light oil discovery well remain under evaluation. Both are in similar water depths.

The Bay du Nord well encountered 34°API light oil and good-quality Jurassic reservoirs with high porosity and high permeability.

Tim Dodson, executive vice president of Statoil Exploration, said: “With only a few wells drilled in a large licensed area, totaling about 8,500 sq km [3,282 sq mi], 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.” Husky said the discoveries could be developed in tandem.

Elsewhere in the region, Husky continues work on its threeWhite Rose satellite developments in the Jeanne d’Arc basin, 350 km (217 mi) east of St. John’s.

Gas injection will start soon at theSouth White Rose extension, where potential resources are 20 MMbbl of oil. The accumulation is being tied back subsea to the SeaRose FPSO. The gas injection will enhance production and provide additional storage for recovered gas. Husky anticipates first oil by the end of 2014.

Engineering is under way on the development concept for the West White Rose field, with first production probably in 2017. Here reserves could total more than 100 MMbbl.

In August, the company spudded a near-field step-out well at Northwest White Rose, which discovered hydrocarbons. Next year Husky plans to drill the Aster exploration well in the southern Flemish Pass basin.

9/26/2013

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