Jack-up rigs are now permitted to drill wells on the
Grand Banks in the Newfoundland and Labrador
offshore area at certain times of the year.

Following last year’s Board sponsored seminar on ice and oil where
recent research about ice was shared with participants, the C-NLOPB
began to assess the feasibility of using such installations on a
seasonal basis.

The Board commissioned a historical review of previous years’ ice patterns by C-CORE to
determine whether an ‘icefree’ season exists. The C-CORE review analyzed
44 years of ice data At the same time, the Board conducted its own study on
Jack-ups – specifically if the new generation Jack-Up was capable of withstanding weather
and water conditions common to the Grand Banks and meeting guidelines established by the Board.

“Based on both analyses,” explained Fred Way, acting Chair and CEO at the Board,
“It appears a jack-up could be used on a seasonal basis on the Grand Banks.
While successful approval of a rig would depend on meeting all the requirements,
having another drilling option available to operators could lead to increased exploration.”

A Jack-up rig had been used on the province’s West Coast in the mid-90s and
they have been used off Nova Scotia for a number of years. This summer will
mark the first time a Jack-up rig will be used to drill exploration wells on the Grand Banks:
Husky Energy has proposed using the Rowan Gorilla VI in the South Whale Basin.

Backgrounder – Jack-Up Rig Policy Announcement

• C-CORE REPORT
• C-CORE REPORT (ADDENDUM)

Media Inquiries:
Simone Keough APR
Manager, Communications
(709) 778-1418