Reserves Estimate

The Penobscot field is directly analogous to the Cohasset/Panuke oil fields located on the Scotian Shelf approximately 60 km to the southwest. 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 to 1999. The total volume of oil produced from Cohasset was 28.3 MMBbls and total Panuke production was 16.2 MMBbls demonstrating that relatively modest offshore oil fields can be economically viable.

Penobscot is interpreted to comprise three separate oil accumulations. The southern accumulation (South Penobscot) was tested by the Penobscot L-30 well and contains high confidence oil reserves. The two potential accumulations to the north (North & Northeast Penobscot) have not been drilled and are termed possible reserves. The CNSOPB conducted a probabilistic resource assessment of South Penobscot and North/Northeast Penobscot reporting in place and recoverable reserves (Tables 4.4 and 4.5).

Table 4.4 Penobscot oil in place.

Table 4.5 Penobscot recoverable oil in place.