Statoil Completes Two-Well Exploration Drilling Campaign

Both wells were drilled safely and efficiently by the Seadrill West Aquarius in the Flemish Pass Basin, located approximately 500 kilometers east of St. John’s, Newfoundland and Labrador. The two wells, located within tie-back vicinity to Statoil’s 2013 Bay du Nord discovery, did not result in the discovery of hydrocarbons.

“These results are disappointing, as we had hoped to add additional optionality to the near-field area at Bay du Nord,” said Trond Jacobsen, vice president, Exploration, Statoil Canada.

“We will now take the time needed to evaluate the results before firming up any plans for additional drilling near-field to Bay du Nord.”

The volume estimates for Bay du Nord, including the Bay de Verde and Baccalieu discoveries announced in 2016, remain an estimated 300 million barrels of recoverable oil, as previously announced after Statoil’s 2014-16 drilling campaign.

Statoil continues to evaluate future drilling activities in other areas where the company holds acreage in the frontier Flemish Pass Basin. The company’s assessment of the commercial potential of the Bay du Nord discovery is also ongoing.

“We continue to evaluate the feasibility of a development at Bay du Nord,” said Paul Fulton, president, Statoil Canada. “While these results mean a reduction in optionality for a potential project development, we continue to work on this project.”