Massive oil find off Canada’s Newfoundland could yield up to 600m barrels

News of a major oil find about 500 kilometres northeast of Newfoundland’s capital city, St. John’s, has sent a seismic-like jolt through the Atlantic Canadian energy sector.

Although potential production at the Bay du Nord discovery is not expected until after 2020, the announcement was welcomed in a province that leans heavily on offshore earnings.

“This is obviously a fantastic development and not just for Newfoundland-Labrador, but for the entire Atlantic region,” Phillip Knoll, president and chief executive officer of Corridor Resources Inc. of Halifax, said in an interview with The Chronicle Herald.

Statoil, the Norwegian oil major and its Calgary-based partner Husky Energy (TSX:HSE) said in a separate statement the reservoir of light crude is believed to hold between 300 million and 600 million barrels of recoverable oil.

“This is among the 12 biggest discoveries over the last three years,” the oil firm said, adding it is also the largest ever done outside of Norway.

Statoil is the operator of the Mizzen, Harpoon and Bay du Nord prospects with a 65% stake on them.

Husky, which holds a 35% in the venture, is Canada’s third largest integrated oil and gas company. It has 15 exploration licences and 23 significant discovery areas in offshore Newfoundland and Labrador.

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