Statoil announces large oil discovery off Canada

|By:, SA News Editor

Statoil (STO) discovers up to 600M barrels of recoverable oil at its Bay du Nord prospect offshore Canada, its third discovery in a potential new core production area.

The discovery in the Flemish Pass Basin off Newfoundland was first announced in August, but STO said a sidetrack well drilled this week had confirmed the significance of the find.

STO previously made the Mizzen discovery in the same area, expected to hold 100M-200M barrels of recoverable oil, and the Harpoon discovery, which is still under evaluation.

The Norwegian company is the operator of the discovery and holds a 65% stake; Husky Energy (HUSKF.PK) owns the remaining 35%.

STO +1.5% premarket.