By OGJ editors
HOUSTON, July 27 -- The Canada-Nova Scotia Offshore Petroleum Board awarded exploration blocks that contain the 1976 Penobscot light oil and 1972 Eagle gas discoveries on the Scotian shelf to privately held Ammonite Corp., New Canaan, Conn., and Catheart Energy Inc., Sugar Land, Tex.
The combined work commitment is $216 million (Can.). The blocks total 281,444 acres in 50-200 m of water near the Sable Island gas producing complex.
The companies have 3 years to begin implementing the work programs and must drill a well by 5 years to extend the licenses to the full 9-year term.
Penobscot has three structures with a combined 26-80 million bbl recoverable in Cretaceous Mississauga at 8,100-8,800 ft, and Eagle has 283-720 bcf recoverable in Cretaceous Wyandot chalk at 5,275-5,466 ft.
Ammonite and Catheart plan to develop Eagle, in 50 m of water, using long-reach horizontal wells. A gas pipeline crosses the block 20 km northeast of the discovery well.
Both parcels are believed to have deeper exploration potential.
