Oil and Gas Developments in Eastern Canada in 1988

Abstract

Exploration activity on Canada's east coast offshore region continued at a steady rate in 1988. A total of 10 wells were active: 1 exploratory well offshore Nova Scotia, and 5 exploratory wells and 4 delineation wells offshore Newfoundland. The highlights of 1988 were Mobil's discovery of a new gas and condensate pool south of Sable Island offshore Nova Scotia, and successful delineation drilling results offshore Newfoundland by Petro-Canada at Terra Nova and by Husky Oil Operations at Whiterose. Based on these successes, the estimates of discovered oil and gas resources for the region have been revised upwards to 235 million m3 (1.5 billion bbl) of oil and condensate and 309.4 billion m3 (10.9 tcf) of natural gas. A significant step was made toward development of the Hibernia oil and gas field with the signing of a Statement of Principles by the governments of Canada and of Newfoundland and Labrador with Mobil Oil Canada and its partners. Also Petro-Canada is undertaking a preliminary engineering study to evaluate alternative development scenarios for Terra Nova field. Studies are also in progress on possible schemes to develop the several natural gas discoveries and the 2 small oil discoveries in the Nova Scotia offshore. Legislation required to implement joint federal-provincial resource management offshore Nova Scotia has been passed by the Canadian Parliament and the provincial legislature and will likely be proclaimed in 1989. At that point, a new resource management board will assume responsibility for the Nova Scotia offshore. This arrangement is identical to that established in the Newfoundland offshore in 1987. The future looks bright for the East Coast given the stable resource management regime, the regular schedule of rights issuances, and the large remaining potential. Steps to development of the best of the discoveries will lead to an increase in the pace of exploration in the early 1990s. Activity in Ontario in 1988 was at its highest level since 1980, with drilling completed at a total of 188 wells for an aggregate length of nearly 107,000 m (350,000 ft). Activity was paced by a record amount of drilling of Ordovician targets, as interest in this very successful play continued to increase. Drilling of Ordovician targets was reported to be complete at 25 exploratory wells, 15 development wells, and 2 stratigraphic tests, resulting in 21 new oil producers and 4 gas producers. Oil production in Ontario increased dramatically in 1988, due entirely to production from new Ordovician reservoirs discovered since 1983. Production totaled approximately 190,570 m3 (1.2 million bbl) compared to 135,635 m3 (853,000 bbl) in 1987. Further production increases a e expected in 1989. Activity in Quebec in 1988 was concentrated in the Basse-Terres region near Trois Rivieres in the St. Lawrence lowlands, and on Anticosti Island. Five exploratory wells and 6 natural gas storage wells were drilled. Two of the exploratory wells resulted in discovery of an accumulation of natural gas in unconsolidated glacial sediments beneath Lake St. Pierre on the St. Lawrence River. There was no drilling activity in onshore portions of Prince Edward Island, Nova Scotia, New Brunswick, or Newfoundland in 1988.