Nwest Energy Corp. has received approval from the Canada-Newfoundland and Labrador Offshore Petroleum Board (“C-NLOPB”) for the consolidation of the company’s four Exploration Licences 1097, 1098, 1103 and 1104 situated offshore western Newfoundland.
The Exploration Licence consolidation will allow for the Company to focus specifically on the near shore development of the Green Point oil shale unconventional resource across all four licences. The near shore acreage will allow for the unconventional potential to be tested by drilling from onshore locations.
The Green Point shale is the proven oil source rock in the region. The recent AJM Petroleum Consultants Report (“AJM Report”) provided a Best Estimate (P50) Undiscovered Petroleum Initially-in-Place Resource Best Estimate of 18.8 billion barrels.
The consolidated Exploration Licence also retains acreage over the “T prospect” covered in the 2008 E3D seismic program.
Nwest is evaluating its options regarding further exploration and determination of resource potential. The Green Point unconventional resource exploration program is at an early stage; significant work is required to determine the potential for commercially viable resource recovery.
[mappress] Offshore Energy Today Staff , December 12, 2011