Under the Ptarmigan Agreement, signed April 25, 2013 BSE has gained a 100% Working Interest in 3 offshore exploration licenses (EL’s 1120, 1127, 1128). EL1120 encompasses 2 large undrilled light oil prospects that has the potential to contain 250 MMbbls of light oil.
Location of Ptarmigan Exploration Licenses in which BSE has the
opportunity to earn a 100% Working Interest.
This region is in one of the last highly accessible, shallow water frontier areas of North America and offers the potential for superior returns in relation to the risk profile. The targeted Paleozoic sequence underlying the shelf of St. Lawrence Bay is similar with productive sections drilled within North America's Appalachian foreland basins.
The offshore area is primarily a thick carbonate platform located in a foreland basin setting within the Anticosti Basin. A secondary target area east of the foreland basin includes the Appalachian Deformation Front (ASF) containing stacked thrust sheets. While some drilling has occurred in the region, it has been largely onshore. To date, no wells have been drilled in the foreland basin itself. Only limited drilling has occured in the thrust zone (shallow water or onshore to offshore wells), which included a light oil discovery.
Ptarmigan has completed significant work on its License 1120 and, based on this work, acquired two additional licenses (ELs 1127 and 1128) in 2011. This exploration work has included building a 2D seismic data base over the EL 1120, reprocessing and multi-phase reinterpretation of the seismic grid originally acquired by Mobil Oil in the 1990s.
The primary targets within the exploration licenses are the same Ordovician carbonates found in PL2002-01(A) however they are located in an extensional environment. The play is similarly a HTD play relying on faulting history for reservoir development however the structural framework for the targets are horsts and tilted fault blocks that formed due to migration of a flexural forebulge during the Taconic orogeny. The primary prospects within the Ptarmigan licenses are 2 large undrilled prospects that have the potential to contain over 250 MMbbls of oil. There are atleast four additional leads along faults throughout EL 1127 and EL 1128 that have not yet been adequately characterized due to lack of seismic data and quality of existing data. To date no wells have been drilled into the extensional environment in offshore western Newfoundland. . A recent independent assessment of the prospect’s hydrocarbon potential was completed by Martin and Brusset Associates of Calgary (September 2012).
Go Forward Plans
BSE plans to reprocess a number of offshore seismic lines in EL 1120 shot in 1991 to evaluate if modern reprocessing will enhance the seismic details. BSE plans to drill into EL 1120 during 2015. BSE plans on shooting a 1000+ square kilometer 3D survey in Q2-Q3 of 2016 that will cover the primary prospects, York and Lark Harbour, as well as additional areas to the west that are not well mapped. This will allow BSE to high grade targets over the Lark and York Harbour prospects as well as to explore for additional leads to the north in EL 1120 and west into EL 1128. The objective of the exploration is to identify a drilling target for a 2017-2019 offshore drill program.