Parsons Pond
In August 2009, Nalcor Energy Oil and Gas announced it had acquired an average 67 per cent working interest in three onshore exploration permits in Parsons Pond covering 103,000 acres. As Operator with its joint venture partners, Nalcor proposed to drill three wells in its first onshore drilling program.
Nalcor's main operational objective of this onshore exploration program was to gain information on regarding the geology and ultimately the petroleum potential of this area. The wells were the first deep wells to test of the carbonate platform at Parsons Pond.
In preparation for the Parsons Pond drilling program, Nalcor Energy undertook an extensive environment approval process for the onshore exploration project on the province's west coast. Nalcor followed all necessary compliance procedures and ensured all necessary permits were in place before drill sites and road construction began. For more information regarding Nalcor's environmental approval process, please view the statement issued by Nalcor.
In May 2010, Nalcor announced that the first well of the Parsons Pond Drilling Program, Nalcor et al Seamus, which was started on February 16, 2010, reached the planned total drilling depth of 3,160 meters. Testing on this well was completed in January 2011.
In December 2010, Nalcor announced that the second well of its Parsons Pond Drilling Program, Nalcor et al Finnegan, which spud in early September, has reached total drilling depth of 3,130 meters. Natural gas was encountered during drilling. The well is currently suspended as the data is reviewed and next steps determined.
On February 17, 2011, Nalcor and its partners announced their intention not to drill Nalcor et al Darcy well in the Parsons Pond onshore exploration program.
The first two wells encountered gas shows while drilling, and analysis of the data obtained show that drilling in this third location, which is located directly between the first two wells, will likely result in similar results and provide limited additional information about this area's oil and gas potential.
The company is currently focusing its efforts on analyzing and understanding the extensive dataset obtained from drilling the first two wells, and testing conducted at the first well, Nalcor et al Seamus. The results of our drilling, testing and seismic analysis have provided good quality data that has advanced our understanding of this West Coast basin. We continue to analyze the gathered data to further evaluate the basin’s petroleum potential.
In addition to Nalcor Energy, there are four other project partners with varying holdings in the three permits: Leprechaun Resources Ltd.; Deer Lake Oil and Gas Inc.; Investcan Energy Corporation; and Vulcan Minerals Inc.