Newfoundland Mines and Energy Minister Walter Noel released two geological reports relating to 14 offshore parcels being offered in this year's call for bids that closes on Dec. 17.
G&G Exploration Consulting of Calgary, Alberta, an independent consultant, prepared the larger of the two reports, which relates to the 12 parcels in the Orphan basin, off Eastern Newfoundland.
The Department of Mines and Energy prepared the smaller report, relating to two parcels offered in the Flemish Pass basin.
"It is our hope that this information will bring focus to the petroleum potential of these areas and encourage additional interest in this year's call for bids, and offshore exploration in general," Noel said.
G&G Exploration Consultants based its report on new proprietary data used with the permission of Geophysical Services Inc. of Calgary.
"The report concludes that the Orphan basin contains similar rocks to those found in the Jeanne d'Arc basin, an area that is home to Hibernia, Terra Nova and White Rose," Noel said. "In addition to discussing the geology of the Orphan basin and of the individual parcels, the consultant has carried out a preliminary resource assessment on 15 structures that have been identified in the call for bids parcels. The consultant has concluded that several of these structures have the potential to contain in excess of one billion barrels of recoverable oil."
The Department of Mines and Energy report results show the presence of large prospects, which could contain commercial quantities of oil and gas.
"The information contained in these studies is very encouraging. There is evidence of undrilled structures with huge potential, which clearly demonstrates the untapped possibilities of our offshore area. I am hopeful that we will see serious interest in this year's Call for Bids," Noel said.