Enegi Oil exploration licence extended

Frank Gale fgale@thewesternstar.com
Published on January 19, 2014
Derek Sullivan is shown in this May 2012 photo.
Star file photo

CAPE ST. GEORGE  Enegi Oil has confirmed an extended period of exploration licence EL1116 at Cape St. George for one year.

Enegi’s partner, Black Spruce Exploration, has paid a drilling deposit of $250,000 to the Canada-Newfoundland Offshore Petroleum Board for the extension.

As a result, the initial five-year licence period for EL1116 was extended, which is in advance of a drilling program planned to take place on the licence this year targeting the St. George's Bay prospect.

Black Spruce vice-president Derek Sullivan said his company is bringing in a rig this spring and would start drilling, hopefully in April, at the Garden Hill Field.

He said following the anticipated successful drilling at Garden Hill the company expects to move on to drill in the St. George’s Bay prospect at EL1116 from onshore to offshore to tap into the offshore extent of the Garden Hill hydrothermal dolomite trend.

Sullivan said the company believes the spring drilling on Garden Hill will provide them with information on where to drill for the St. George’s Bay prospect, as it’s believed that this is an extension of the same trend.

He said Black Spruce Exploration is not sure right now the location of where the onshore to offshore drilling will take place, but believes it will be in or close to Cape St. George. An environmental assessment and other regulatory matters have to be met before that drilling takes place, which now has to be before Jan. 15, 2015.

On completion of the well, under the terms of the license, EL1116 will enter its second period and will then be valid for a further three years, following the end of this extended 12-month period.

Sullivan said both the well on Garden Hill and the onshore to offshore well will involve conventional drilling and along with their partner Enegi Oil Plc, they are excited to see the full potential of this area.