Imperial Oil Resources Ventures Ltd. plans to begin drilling operations as early as July on its deepwater acreage on the Scotian slope, located southeast of Halifax, pending final regulatory approval. Imperial’s announcement followed a call for bids on four offshore packages unveiled by the Canada-Nova Scotia Offshore Petroleum Board (CNSOPB).

Imperial on Thursday awarded a drilling services contract to Ocean Rig Canada for the planned deepwater exploration well. The semi-submersible drill vessel Eirik Raude will provide drilling services for the well, which will drill on Imperial’s deepwater acreage on the Scotian slope.

Imperial, which will operate the well, obtained 100 % exploration rights to the two deepwater parcels on the Scotian slope in 1999. The parcels cover an area of a quarter-million hectares, in water depths ranging from 200 to 3,000 meters. Imperial was awarded the licenses after proposing total exploration spending of C$100 million. Three-dimensional seismic on the two parcels was acquired in 2000 and 2001.

Imperial reached an agreement with Talisman Energy under which Talisman will earn a 30% equity interest in two deepwater licenses by participating in drilling one of the exploration wells on the block.

“The offshore Nova Scotia deepwater play contains a number of large, high-potential exploration leads, but remains unproven,” said K.C. Williams, a senior vice president of Imperial. “Although the geologic risk and the drilling costs are high, the financial exposure is prudent to test this significant opportunity now. “Extensive technical work has been performed to help assess the risks in preparation for drilling. The Balvenie well will be an important test for this lightly explored, deepwater basin.”

In addition to these deepwater exploration interests offshore Nova Scotia, Imperial holds a 9% working interest in the Sable Offshore Energy Project, a 20% interest in six shallow-water offshore parcels in the vicinity of the Sable project and a one-sixth interest in three additional deepwater parcels.

In related news, the CNSOPB announced a call for bids on four offshore parcels with a total area of approximately 250,524 hectares, which will remain open until Nov. 6. The included parcels are covered in a Strategic Environmental Assessment available on the board’s web site at www.cnsopb.ns.ca. Minimum bids are C$1 million. Following approval, the successful bidders will be issued an exploration license for nine years, consisting of two consecutive periods. Drilling must begin in the first period to be eligible for the second period.

For more information, contact the CNSOPB, 6th Floor, TD Centre, 1791 Barrington St., Halifax, NS, B3J 3K9.

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