ST. JOHN'S, Newfoundland and Labrador — The Canada-Newfoundland and Labrador Offshore Petroleum Board (C-NLOPB) has issued significant discovery license 1059 to Equinor Canada Ltd. and is announcing the related volume estimate for the Cappahayden K-67 discovery.
The C-NLOPB’s interpretation of well and seismic data associated with this discovery has resulted in an update to the contingent resources section of its petroleum EUR and contingent resources table. The recoverable oil volume from this discovery is estimated to be 385 MMbbl.
The Petroleum Resources Management System adopted by the C-NLOPB defines contingent resources as “volumes of hydrocarbons, expressed at 50% probability, assessed to be technically recoverable that have not been delineated and have unknown economic viability.” This includes oil in fields/pools that are not approved for development.
Companies that explore must apply for a significant discovery license once they discover oil and gas to preserve their rights to exclusively produce in that area. Once a company is ready to produce oil or gas, it must ask the regulator for a commercial discovery declaration. Equinor owns 60% of the discovery, and bp owns the remaining 40%, according to the license.
In 2020 Equinor hit hydrocarbons with its Cappahayden K-67 wildcat in the Flemish Pass offshore Canada, a potentially commercial discovery that could be tied back to its marginal Bay du Nord project 17 km away. At the time, plans were for the probe off Newfoundland & Labrador to be side-tracked, having intercepted hydrocarbons in what is thought to be the same reservoir as Bay du Nord.