The Newfoundland and Labrador Department of Mines and Energy, St. John's, Newf., has chosen successful bidders for exploration licenses on three onshore blocks.
Vinland Petroleum Inc. acquired Blocks 8 and 9, each of about 380 sq km. Parcel 8 is east of Main Brook, and 9 is north of Port Au Choix. Vinland is committed to spending $10,630 on each parcel during the 5 year term of its exploration permits.
Labrador Mining & Exploration Co. Ltd., a unit of Norcen Energy Resources Ltd., Calgary, was successful bidder on Block 13 near Parson's Pond and has committed to spend $1.628 million on the 400 sq km area during 5 years.
The companies have until May 20 to submit a $10,000 performance bond, at which time permits are to be issued.
The permits are all on western Newfoundland's Paleozoic carbonate platform, where, as of yearend 1991, about 60 wells had been drilled (OGJ, Dec. 30, 1991, p. 107). About half the wells found minor amounts of hydrocarbons.
Cumulative production from the area reached about 6,000 bbl in the early 1900s, and there is no current production.
In 1991 the Canada-Newfoundland Offshore Petroleum Board (Cnopb), St. John's, accepted a bid for exploration off the western coast of Newfoundland, also part of the carbonate platform, from Labrador Mining & Exploration. The company committed to spend $377,700 on a 2,320 sq km area during the first 5 years of a 9 year license.
And in 1990 Cnopb accepted seven bids for exploration off western Newfoundland and issued 9 year licenses on each, with companies expected to drill within the first 5 years.
472310 Alberta Ltd. committed to spend $404,000 on a 1,785 sq km tract, Hunt Oil Co. said it would spend $350,200 on a 2,492 sq km tract and $350,000 on a 2,719 sq km tract, Mobil Oil Canada Properties $668,760 on a 2,236 sq km area and $2.1 million on a 2,588 sq km block, BHP Petroleum Ltd. committed $1.5 million on a 2,579 sq km tract, and Labrador Mining & Exploration $320,000 on a 2,161 sq km parcel.
The companies awarded licenses in 1990 must spud their wells before Jan. 15, 1996, and Labrador Mining & Exploration must spud on its 1991 license area by Jan. 6, 1997.
Copyright 1992 Oil & Gas Journal. All Rights Reserved.
