Statoil confirms Flemish Pass oil find off Newfoundland

Statoil ASA said it has confirmed that its 2009 Mizzen discovery in the Flemish Pass basin 500 km east of St. John’s, Newf., contains a resource of 100-200 million bbl of oil equivalent recoverable.

The company is assessing Mizzen to determine how and when it can be economically developed and will continue to explore offshore Newfoundland and Labrador.

Statoil plans to drill two exploratory wells in 2012-13 and potentially more wells in 2014 and beyond. The company released a map that shows the Harpoon location about 20 km south-southeast of Mizzen and the Cupids location about 80 km north of Mizzen, both on Statoil-operated licenses.

Statoil drilled Mizzen O-16 in 1,100 m of water. It followed in late 2009 with the Mizzen F-09 appraisal well, in which Statoil was operator with 65% interest and Husky Energy Inc. had 35%. The Canada-Newfoundland and Labrador Offshore Petroleum Board assigned Mizzen a significant discovery license 1047-1048.

Statoil has interests in Hibernia and Terra Nova producing oil fields and the Hebron and Hibernia Southern Extension fields off Newfoundland, but a Flemish Pass development could establish a core area and become the company’s first operated project off eastern Canada.