Probable oil reserves on the Grand Banks off Newfoundland are about half original estimates, the latest Canadian government study says.
A report by the Geological Survey of Canada and Canada-Newfoundland Offshore Petroleum Board estimates probable reserves at 4.7 billion bbl of crude, only 53% of original estimates of 8.9 billion bbl.
Reserves in Hibernia oil field, earmarked for development, are estimated at 525650 million bbl. Early estimates were as much as 1 billion bbl.
Richard Procter of the federal Petroleum Resources Appraisal Secretariat said the new estimates are based on a decade of drilling and improved seismic data.
Procter said geological information shows industry can still expect to make two discoveries of more than 100 million bbl in the Jeanne D'Arc basin area, which could be big enough to justify development. Another 20 discoveries of more than 25 million bbl are forecast.
Canadian Petroleum Association spokesman Hans Maciej said results fluctuate, and the new estimates are not a surprise.
Maciej said the area is still at the beginning of the exploration cycle and later reserves revisions may go the other way.
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