BSE has purchased 100% ownership of two Exploration Permits EP93-103 & EP03-105 totalling some 159,000 acres, onshore Newfoundland within the Deer Lake Basin. It presents an opportunity to drill for oil and gas in a frontier basin that has a history of oil and gas seeps to surface along with both conventional and unconventional prospectivity. The basin is close to the Trans Canada Highway which makes access and exploration in the basin easy and cost effective.
BSE’s Deer Lake Exploration Licenses.
With only 7 wells and 5 seismic lines, Deer Lake is in the early stages of exploration and is considered a frontier basin. Deer Lake was formed in the Carboniferous and the prospects are predominantly clastics sourced from erosion of the Appalachian Orogeny. Work to date has identified and demonstrated the hydrocarbon generating capacity of the organic rich Rocky Brook Shales as well as good reservoir quality within several sandstone and conglomeritic units. The basin is a strike-slip/pull apart rift basin that is predominantly lacustrine. It rests unconformably on the Ordovician Carbonate platform which has potential prospectivity as well.
History of Exploration:
5 of the 7 wells that have been drilled in the basin to date have encountered oil or gas. Western Adventure #1, for example, drilled in 2000, flowed gas at 100,000 cubic feet/day and the Mills #1 well, drilled in the early 1900’s was a gas blowout from which gas still bubbles today. With the addition of new seismic BSE can progress the current understanding of the basin and generate new leads and targets for 2015-2016 drill program in the basin. Tectonic uplift along the axis of the basin has compartmentalized the east and west part of the basin and created a number of potential drilling targets.
Go Forward Plans
Current plans for the Deer Lake basin include completing a regional study and basin analysis using current well data, known literature and field work with intentions of high grading areas for seismic acquisition and subsequent drilling in 2015 and 2016.