ConocoPhillips Canada has begun seismic exploration of the Laurentian sub-basin off the south coast of Newfoundland, the first step to map a seabed that could hold an estimated 6 Tcf of natural gas and up to 700 million bbl of oil. If the seismic surveys show promise, the Houston-based major cold begin deepwater drilling by 2007, the company said.

Kent Lissack, who manages the company’s frontier exploration in Canada, said the company plans to drill a well within a few years but the sloped basin presents some challenges in obtaining accurate seismic data. The shelf slope, he said, “bends right where we think some of the prospects are,” he told the St. John’s Telegram.

With good weather, Lissack said Conoco is planning to conduct 2D seismic surveys in the next two to three months over an area about 6,000 kilometers wide. In the summer of 2005, the company then would conduct 3D surveys, followed by another year of studying the surveys in search of prospects.

In the Laurentian project, Conoco has partnered with Murphy Oil Corp., which owns a 30% stake in the offshore blocks, as well as BHP Billiton Petroleum (Americas) Inc., a subsidiary of Australian-based BHP Billiton. Conoco and Murphy have committed to spending C$18 million on exploration.

Ed Byrne, Newfoundland and Labrador Minister of Natural Resources, said the province welcomes the new exploration efforts.

“I am glad to see that exploration activity is going ahead in the Laurentian Sub-basin,” said Byrne. “We look forward to seeing this seismic acquisition, which is the precursor to exploratory drilling, in an unexplored area of excellent potential.”

©Copyright 2004 Intelligence Press Inc. All rights reserved. The preceding news report may not be republished or redistributed, in whole or in part, in any form, without prior written consent of Intelligence Press, Inc.