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Statoil announced Thursday that they, along with their partner Husky Energy, have made a huge oil discovery in their first Bay du Nord exploration well.

Initial figures estimate between 300-600 million barrels of recoverable oil.

The discovered oil is light, and exists in “excellent” Jurassic reservoirs with high porosity and permeability, Statoil announced.

Additional resource prospects have already been identified.

The Bay du Nord discovery is located approximately 300 miles northeast of St John’s, Newfoundland and Labrador, and  is Statoil’s third discovery in the Flemish Pass Basin.

Statoil Exploration Executive Vice President Tim Dodson commented in a company statement:

“It is exciting that Statoil is opening a new basin offshore Newfoundland. This brings us one step closer to becoming a producing operator in the area.With only a few wells drilled in a large licensed area, totaling about 8,500 square kilometers, more work is required. This will involve new seismic as well as additional exploration and appraisal drilling to confirm these estimates before the partnership can decide on an optimal development solution in this frontier basin.”

Statoil is the operator of Bay du Nord with a 65% stake, their partner Husky holds the remaining 35% stake.