Reuters: Shell Canada Buys Offshore Newfoundland Rights: “Shell Canada Ltd. marked its exploration return to offshore Newfoundland on Wednesday by acquiring a 20 percent interest in eight exploration licenses in the Orphan Basin” (ShellNews.net) 2 March 05
Wed March 2, 2005
TORONTO (Reuters) - Shell Canada Ltd. marked its exploration return to offshore Newfoundland on Wednesday by acquiring a 20 percent interest in eight exploration licenses in the Orphan Basin.
Shell Canada, the country's No. 2 oil producer and refiner, said the interest in the Orphan Basin, in the Atlantic Ocean about 325 kilometers off the coast of Newfoundland, was acquired under a farm-in agreement with ExxonMobil Canada and Imperial Oil Resources , which will both reduce their respective stakes by 10 percent.
No financial terms were disclosed.
Chevron Canada Resources also has a stake in the Orphan Basin.
"This farm-in is consistent with Shell Canada's renewed focus on growth -- in this case, we're broadening the scope of our exploration activities by gaining access to a new, unexplored deep-water basin," said Dave Collyer, vice president of Shell Canada's frontier division.
"Advances in technology are allowing industry to pursue these challenging, but potentially high-reward, deep-water ventures.
Current exploration plans call for 3-D seismic acquisition in the summer of 2005, Shell said.
Shell Canada, which is majority-owned by Royal Dutch/Shell Group , last explored offshore Newfoundland and Labrador in the early 1990s.
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