The Canada-Newfoundland Offshore Petroleum Board has revised its estimates of the oil reserves and discovered gas and gas liquid resources at the Terra Nova Field. This revision is the result of new information acquired from drilling and production activities.

The Board now estimates that the oil reserves in the Terra Nova field to be 56.3 million cubic metres (354 million bbls), which is a 13 percent reduction from our previous reserve estimates of 64.4 million cubic metres (405 million bbls). Most of this reduction is attributable to the Far East region of the field.

C-NOPB Estimates of Recoverable Reserves/Resources
Terra Nova Field

1. All estimates are based on the C-NOPB’s assessment of Proven/Probable resources expressed at 50% probability.
2. Reserves: those volumes of hydrocarbons, oil and /or gas, that are considered to be recoverable using current technology and under present and anticipated economic conditions.
3. Discovered resources: those volumes of hydrocarbons that have been assessed to be technically recoverable but have not been delineated and/or have uncertain economic viability.

Source:
Wayne Chipman P.Eng
Manager, Resource Management
(709) 778-1400

Media Contact:
Simone Keough APR
Manager, Communications
(709) 778-1418
(709) 687-7429 (cell)

Backgrounder

The volume of recoverable hydrocarbons in a field consists of that proven by drilling and testing, as well as that interpreted to exist from geological, geophysical or other information. 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 table below reflects estimates for the Terra Nova field divided into the three categories used by the Board for resource/reserve classification. Estimate revisions will continue throughout the life of a field as more data is acquired and assessed.

• Proven – generally consider to be 90% chance of recovery
  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 – generally consider to be 50% chance of recovery
  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 and extent 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 – generally consider to be 10% chance of recovery
  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 higher probability classification.