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AAPG Bulletin

Abstract


Volume: 66 (1982)

Issue: 11. (November)

First Page: 1765

Last Page: 1778

Title: Oil and Gas Developments in Eastern Canada in 1981

Author(s): P. A. Palonen, Rae Booth-Horst (2)

Abstract:

Uncertainty of increased taxation of petroleum revenues proposed under the Canadian National Energy Program continued to effect a slowdown of exploration in eastern Canada. Nonetheless, exploration of the East Coast offshore increased from 12 wells during 1980 to 17 wells during 1981. Three wells were drilled on the Scotian Shelf, 9 on the Grand Banks, and 5 on the Labrador Shelf. Drilling off the East Coast confirmed an extension to the northeast of the Venture structure, introduced the possibility of another major oil field on the Grand Banks, and indicated that the Avalon basin contains potential commercial oil fields. Other significant results of exploration in the Atlantic offshore were the discovery of oil and gas in rocks of Jurassic age, the discovery of oil on th Labrador Shelf, and completion of the well heralded by Oilweek as potentially the most prolific oil producer in Canada.

Offshore drilling in Lake Erie decreased 25% to 95 wells during 1981 compared with 126 in 1980. Offshore exploratory drilling in Lake Erie decreased 62% with 19 wells completed, whereas development drilling remained at the same level of activity as in 1980 with 76 wells being completed.

Onshore, 5 exploratory wells were drilled in Quebec, 1 in Nova Scotia, and 31 in Ontario. In Quebec, 4 wells were classed as abandoned and 1 as suspended. The single well drilled in Nova Scotia was classed as dry and abandoned. Onshore exploratory drilling in Ontario decreased by 13% in 1981 compared with 1980. The 31 exploratory wells in Ontario consisted of 1 gas producer, 2 suspended oil producers, and 28 dry holes. Fifty-five development wells, consisting of 33 gas producers, 8 oil producers (including 2 suspended wells), and 14 dry holes were drilled onshore in Ontario during 1981, representing an 8% decrease in the onshore Ontario development class compared with 1980.

An aggressive seismic exploration program was conducted by Chevron, Standard, and Irving Oil in parts of Nova Scotia, Prince Edward Island, and New Brunswick. Seismic exploration onshore in eastern Canada consisted of 280.1 km in Ontario, 1,181 km in Nova Scotia, 75 to 80 km in Quebec, 945 km in New Brunswick, and 30 km in Newfoundland. Nova Scotia reported 12,600 km of offshore seismic exploration, Quebec 850 km, and New Brunswick 807 km. Onshore hectares under lease or license were 93,581 in Ontario, 1,739,245 in Quebec, 681,463 in New Brunswick, and 2,478,622 in Nova Scotia. Offshore hectares under disposition were 946,639 in Lake Erie, 29,173,457 in the Gulf of St. Lawrence and Atlantic, 30,585,562 in Hudson Bay, and 13,917,223 in the Labrador Sea.

During 1981 compared with 1980, production of oil and gas in New Brunswick declined by 47% and 9%, respectively. In Ontario, oil production decreased 3%, whereas gas production decreased 9%. Gas production in Quebec increased by 20% over that in 1980.

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