Statoil and its partner Husky Energy have made a significant oil discovery offshore Canada, with its first Bay du Nord exploration well finding between 300 and 600 million barrels of recoverable oil.
The discovery was made near two previous finds and the company is planning more wells as they believe the region could become a major oil producer after 2020.
The oil that has been discovered in the area is light, with API gravity at 34 degrees, and exists in Jurassic reservoirs with high porosity and high permeability, and additional prospective resources have also been identified.
Statoil has expanded rapidly over the past decade and has made big discoveries in Brazil, Tanzania, the North Sea and the Norwegian Arctic. This most recent discovery will mean Statoil opening a new basin offshore Newfoundland and will give the company an increased presence in the area.