The Canada-Newfoundland Offshore Petroleum Board has updated its estimates of Discovered Oil and Gas Resources in the overall Newfoundland and Labrador offshore area, and the Total Potential Discovered and Undiscovered Oil and Gas Resources in the Jeanne d’Arc Basin and the Ridge Complex. The release of the revised estimates is the product of an updating project which began in June of 1999. At that time, the Board announced it would initiate a comprehensive review of its annual resource estimates, taking into account data acquired in recent exploration and production activities. The last major review of Newfoundland and Labrador offshore petroleum resources was completed and released in 1992.

DISCOVERED RESERVES and RESOURCES

The total estimated oil and gas Discovered Reserves and Resources in the Newfoundland and Labrador offshore area have been revised as follows:

Oil:     2.1 billion bbls.     (from 1.6)

Gas:     9.3 trillion cu.ft.     (from 8.2)

Natural Gas Liquids:     413 million bbls.     (from 360)

The new estimates reflect changes in three major fields as a result of additional information gained from drilling and production operations and seismic data obtained since the last complete estimates were compiled in 1992:

HIBERNIA:
Oil:     884 million bbls.     (from 666)
Gas:     1.4 trillion cu.ft.     (from 1.0)
NGLs:     145 million bbls.     (from 111)

WHITE ROSE:
Oil:     274 million bbls.     (from 178)
Gas:     2.1 trillion cu.ft.     (from 1.5)
NGLs:     77 million bbls.     (from 58)

HEBRON:

Oil:     325 million bbls.     (from 195)

The cumulative effects of the revised estimates for discovered reserves and resources in the Grand Banks area are net increases of 526 million bbls. of oil reserves and resources, 1.1 trillion cu.ft. of gas, and 53 million bbls. of natural gas liquids.

All estimates are based on the C-NOPB’s assessment of Proven/Probable Resources expressed at 50% probability, consistent with previous resource estimates of the Board.

TOTAL POTENTIAL DISCOVERED AND UNDISCOVERED RESOURCES:

Jeanne d’Arc Basin and Ridge Complex

The C-NOPB has revised the petroleum resource potential of the Jeanne d’Arc Basin and the adjoining Ridge Complex as part of the petroleum resource assessment of the entire Newfoundland and Labrador offshore area. All the hydrocarbon discoveries to date on the Grand Banks lie within this area. The resource assessment was carried out in cooperation with the Geological Survey of Canada.

The regional petroleum assessments are based on probabilistic methods developed in the Geological Survey of Canada’s Petroleum Exploration and Resource Evaluation System, PETRIMES. The estimates of total oil and gas potential for the Jeanne d’Arc Basin and the Ridge Complex were calculated separately. The gas potential was also broken down to solution gas (gas dissolved in crude oil in reservoirs), gas cap (free gas overlying crude oil in reservoirs), and non-associated gas (gas that is not in contact with oil in reservoirs).

The total amount of potential recoverable oil, both discovered and undiscovered, is 4.6 billion bbls. , comprised of 4.09 billion bbls. in the Jeanne d’Arc Basin and 0.51 billion bbls. in the Ridge Complex. This assessment represents no significant change from the Board’s previous estimates.

The total amount of potential recoverable gas, both discovered and undiscovered, is 18.8 trillion cu.ft., comprised of 12.6 trillion cu.ft. in the Jeanne d’Arc Basin (solution gas: 3.8 tcf; gas cap: 6.2 tcf; and non-associated gas: 2.6 tcf) and 6.2 trillion cu.ft. in the Ridge Complex (solution gas: 1.6 tcf; gas cap: 2.5 tcf; and non-associated gas: 2.1 tcf).

Both oil and gas potential are expressed at a 50 % probability. The resources are considered to be technically recoverable, but economic factors have not been taken into account.

The C-NOPB, in accordance with its mandate, regularly reviews its offshore petroleum resource estimates. With an increased pace of exploration and development activity, revisions to these estimates will likely be more frequent in future. The next phase of the Board’s assessment is currently underway to determine the potential resources of the Flemish Pass Basin.

Media References:

Hal Stanley
Chairman and CEO
(709) 778-1456

Wayne I. Chipman, P.Eng.
Manager, Reservoir Engineering
(709) 778-1428

Neil DeSilva, P.Geo
Manager, Exploration
(709) 778-1421

Attachments:
Terminology used by the Canada Newfoundland Offshore Petroleum Board
Discovered Reserves and Resources – Newfoundland Offshore Area
Revised Oil Reserves/Resources
Revised Natural Gas Liquids Resources
Revised Gas Resources

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