Assessment of the discovered oil and gas “Reserves” and “Resources” in oil and gas fields is an important function of the Canada Newfoundland Offshore Petroleum Board. “Reserves” is used to describe those volumes of hydrocarbons, oil and /or gas, that are considered to be recoverable using current technology, and under present and anticipated economic conditions. For example the oil in Hibernia and Terra Nova is referred to as reserves. “Discovered resources” is used to describe those volumes of hydrocarbons that have been assessed to be technically recoverable but have not been delineated and/or have uncertain economic viability. The natural gas and natural gas liquids in the Hibernia field and the oil, natural gas and natural gas liquids in most of the fields offshore Newfoundland and Labrador are referred to as discovered resources. They are uneconomic under current conditions and/or have a high degree of technical uncertainty associated with development of the resources. The volume of hydrocarbons consists of that proven by drilling, testing, and that interpreted to exist from geological, geophysical or other information and deemed to be recoverable. Since the assessment of reserves/discovered resources depends on the interpretation of data available at a given time, the reserves/discovered resources are further classified to reflect the inherent uncertainty in the interpretation and the lack of detailed geological and reservoir data. The Board uses the following classifications:

Proven
Hydrocarbons that have been confirmed by drilling and testing or where sufficient geological and geophysical data exist to project the existence of hydrocarbons in adjacent fault blocks. A high confidence level is placed on recovery of these hydrocarbons.

Probable
Hydrocarbons that are projected to exist in fault blocks adjacent to those that have been tested by wells and into which the geologic trends may extend. Also, where fluid contacts have not been defined within the area drilled, these contacts may reasonably be projected to exist. However, additional drilling is required to substantiate the existence of hydrocarbons. These hydrocarbons may reasonably be expected to be recovered under normal operating conditions yet have a degree of risk, either geologic or reservoir performance related, associated with their exploitation.

Possible
Hydrocarbons that may exist based on geophysical analysis and the extension of geological trends. However, due to the lack of adjacent wells located within the region and reservoir engineering and geologic data, these hydrocarbons cannot be assigned a lower risk classification.

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

Back to News Release