Reserve Estimates

The Penobscot field is directly analogous to the Cohasset/Panuke oil fields located on the Scotian Shelf approximately 60 km to the southwest. Combined, Cohasset and Panuke produced over 44 MMBbls of light sweet oil from high quality, relatively thin, reservoir sands located within the Logan Canyon and upper Missisauga formations. The fields were on production from 1992 – 1999. The total volume of oil produced from Cohasset was 28.3 MMBbls and total Panuke production was 16.2 MMBbls. This demonstrates that relatively modest offshore oil fields can be economically viable.

FIGURE: 13

Penobscot is interpreted to contain three separate oil accumulations, shown in green in Figure 13. The southern accumulation (South Penobscot) was tested by the Penobscot L-30 well and is considered to contain high confidence oil reserves. The two accumulations to the north (North & Northeast Penobscot) have not been tested by drilling and therefore contain lower confidence (possible) reserves. Due to the different confidence levels, between the northern and southern areas of the field, each region was assessed separately. The CNSOPB conducted a probabilistic resource assessment of the two Penobscot reservoir regions, South Penobscot and North/Northeast Penobscot, and the results are tabulated below.