The Canada-Newfoundland and Labrador Offshore Petroleum Board (C-NLOPB) announced today that Husky Energy’s Development Plan Amendment for the White Rose Extension Project has received conditional approval from the Board along with the federal and provincial governments. This project is still being assessed by Husky Energy and requires a final investment decision from the company and its partners. As a result of this conditional approval, the C-NLOPB has updated the reserves and resources for the White Rose Field to reflect an additional 165 MMbbls of oil, a decrease in gas of 5 Bscf and a decrease of 4 MMbbls in natural gas liquids (NGLs).

At its June 19, 2015 meeting, the Board approved the White Rose Extension Project Benefits Plan Amendment and Development Plan Amendment, subject to the conditions outlined in Decision Report 2015.07. In its deliberation with respect to these plans, the Board considered advice provided in its staff’s analysis as well as comments resulting from the public review.

Under the Atlantic Accord Implementation Acts, the Board’s approval was a Fundamental Decision, which has also been ratified by both governments as required. While Husky Energy and its partners continue to consider next steps with respect to this project, approval of the Development Plan Amendment enables them to proceed with further development of the White Rose Field in accordance with the approved approach if they so choose.

The following backgrounder describes the changes that have been made to the Board’s assessment of White Rose reserves and resources.

The Board’s Resource Management Department has recently completed a reassessment of the oil, gas and natural gas liquids (NGLs) reserves/resource estimates for the White Rose Field. Under the original Development Plan in 2001, Husky Energy was approved to develop the South Pool only. The West Pool, North Pool and Blocks 2 & 5 of the South Pool were deferred for development pending the results of drilling and production from the South Pool, initial reservoir pressure response in the North Pool, and the expected availability of the Floating Production Storage and Offloading (FPSO) production capacity.

Since production commenced at the White Rose Field in November 2005, information has been obtained from drilling and production from the South Pool. Also, gas injection into the North Pool has given pressure response data and there has been a successful Pilot Project in the West Pool to determine if production is feasible. Using this new data, the White Rose Extension Project DPA, submitted in October 2013, proposes to develop the West Pool, North Pool and
Blocks 2 and 5 of the South Pool from a Wellhead Platform (WHP). As the West Pool has the largest reserves of all these pools, it will be the primary focus of the White Rose Extension Project. Infill development wells in the currently producing Terrace and Central Blocks of the South Pool are also proposed from the WHP. A reserves/resources update of the entire field was deemed appropriate with the conditional approval of the White Rose Extension Project DPA.

Based on the staff analysis for the White Rose Field, the Proven and Probable (2P) recoverable oil reserves estimate for South Pool has increased from 206.9 MMbbls to 246.2 MMbbls. The Southern Extension Pool Proven and Probable (2P) recoverable oil reserves estimate remains unchanged at 22 MMbbls. The Proven and Probable (2P) recoverable oil reserves estimate for the West Pool has increased from 9.8 MMbbls to 117.1 MMbbls. The following pools were previously considered resources in the 2001 Reserves/Resources Estimates. The Proven and Probable (2P) recoverable oil reserves estimate for the North Pool has decreased from 14.4 MMbbls to 5.7 MMbbls, the Proven and Probable (2P) recoverable oil reserves estimate for Blocks 2 and 5 has decreased from 16.4 MMbbls to 12.9 MMbbls.

The Proven and Probable (2P) recoverable gas resources estimate has decreased from 3023 Bscf to 3018 Bscf while the NGL resources have decreased from 96 MMbbls to 92 MMbbls.

In summary, there is an overall increase of 165 MMbbls of oil, decrease of 5 Bscf of gas resources and a decrease of 4 MMbbls in NGLs in the White Rose Field.

Media Contact:
Sean Kelly M.A.,APR, FCPRS
Manager of Public Relations
(709) 778-1418
(709) 689-0713 (cell)
skelly@cnlopb.ca