Independent Resource Assessment reveals oil and gas potential offshore Newfoundland and Labrador continues to grow

By September 7, 2018Press Release

The Government of Newfoundland and Labrador, Nalcor Energy-Oil and Gas and Beicip-Franlab today released the 2018 Oil and Gas Resource Assessment that identifies an additional 11.7 billion barrels of oil and 60.2 trillion cubic feet of gas potential offshore.

The independent resource assessments are based on new data covering parcels on offer in the Orphan Basin (NL18-CFB01) and the East Jeanne d’Arc Basin (NL18-CFB01) within the area of the Canada-Newfoundland and Labrador Offshore Petroleum Board (C-NLOPB) 2018 Eastern Newfoundland Call for Bids.

“The resource potential in our offshore is incredible.  In less than 7 per cent of our offshore, we have a combined resource potential of 49.2 Billion Barrels of Oil and 193.8 Trillion Cubic Feet of Gas,” said the Honourable Siobhan Coady, Minister of Natural Resources. “We have over 650 leads and prospects identified to date, seven new entrants in the past two years, and $2.9 billion in recent exploration work commitments. We will continue to position our province as an internationally preferred location for oil and gas exploration and development.”

The upcoming license round includes a total of 16 parcels, nine new are the focus of the resource assessment which have been broken into two separate land areas – 2018 A (Orphan Basin) and 2018 B (East Jeanne d’Arc Basin). New 3D seismic data coupled with seabed cores collected by Nalcor and partners, TGS, PGS and Furgo, in the Orphan Basin has provided scientific evidence of active petroleum systems in the bid area. Multiple leads and prospects have been identified and separate assessment reports have been completed for 2018 A and 2018 B.

“We’re seeing the potential for multiple material scale opportunities in this upcoming license round and as a result of our 3D data investments we’ve also uncovered new leads and prospects in an area that was previously offered and is coming back for bidding in this license round,” said Jim Keating, Executive Vice President, Corporate Services and Offshore Development, Nalcor Energy-Oil and Gas. “Our ongoing collection of data is showing significant geological diversity throughout our offshore. Currently five drilling plans have been submitted to the regulator. These exploration programs coupled with the province’s continued data acquisition will further build our knowledge surrounding the full resource potential offshore and the role these resources will play in building a strong future for our province.”

Using the insights from regional Nalcor-Airbus satellite seeps survey and gravity and magnetics data, Nalcor, in partnership with global seismic companies TGS and PGS, is conducting one of the largest seismic programs in the world. By the end of 2017, over 170,000 line kilometres of new 2D and 15,000 square kilometres of multi-client 3D seismic data had been acquired. In addition to new data acquisition, Nalcor is systematically evaluating Offshore NL’s sedimentary basins for their potential to contain new oil and gas discoveries. From biostratigraphy to regional rock physics, these studies are undertaken to address key risks and scientific uncertainties in an effort to enhance industry investment in the province.  All this data and knowledge helps inform the annual resource assessment results.

“Beicip-Franlab has carried out detailed interpretations of past and new well and seismic data in the Orphan / Flemish basins and in the Eastern Jeanne d’Arc basin. These interpretations and Petroleum Systems modeling indicate the existence of significant oil and gas resources.” said Jean Burrus, CEO, Beicip-Franlab.

The independent assessment covers approximately 2% (20,000 square kilometres) of Newfoundland and Labrador’s offshore area. Future license rounds scheduled through 2021 will follow the same process with detailed resource assessments being conducted and released prior to bid closing.

2018 A (Orphan Basin)

2018 B (East Jeanne d’Arc Basin).

Nalcor Energy Oil and Gas is currently a working interest partner in three offshore developments: the Hebron oil field, the White Rose Growth Project and the Hibernia Southern Extension. Nalcor is also leading the exploration of the province’s frontier and deepwater basins by making investments in new geoscience data and analysis to evaluate Newfoundland and Labrador’s undiscovered oil and gas resource potential.

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Media Contact:
Leona Barrington
Nalcor Energy-Oil and Gas
t: 709.737.4244
c: 709.699.8035
e: leonabarrington@nalcorenergy.com

Nancy Hollett
Natural Resources
t: 709.729.5777
c: 709.685.3372
e: nancyhollett@gov.nl.ca

 

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