'Record-breaking' land sale for oil exploration off Newfoundland coast

At $757,989,794 in total work commitments fromoil companies, Newfoundland and Labrador's offshore petroleum associationis calling the results of the latest exploration bids "record-breaking."

• Oil companies promise $758M in work for right to explore off Newfoundland

"This is one of the most successful land sales in Newfoundland and Labrador's history," said Raymond Collins, chair of theNewfoundland and Labrador Oil and Gas Industries Association.

NOIA the country's largest offshore petroleum association said the deepwater basins off the coast of the island hold significant potential for growth in oil and gas exploration,development and production.

Collins called it "a highly sought after investment area" for global companies, "despite current low oil prices."

"This is especially significant given a year of very disappointing sales globally," Collins said in a press release Thursday morning.

Collins noted Husky Energy's commitment to the mature Jeanne d'Arcregion in particular.

"There is no doubt that this basin has served this province very well, but as evidenced by Husky's interest, there is still opportunity to maximize the area's remaining resources," he said.

Second sale, second public report

NOIA also noted this land sale for parcels in the eastern Newfoundland which includes the Flemish Pass and Jeanne d'Arc regions is just the second land sale under the scheduled land tenure system in the Canada-Newfoundland and Labrador Offshore Petroleum Board (C-NLOPB) offshore area.

And the second time there's been a public report outlining the oil and gas resource potential for the area before bids closed.

The offshore petroleum association reiterated its support of Nalcor Energy's ongoing geoscience program, and its importance to developing the oil industry.

• Potential 25 billion barrels of oil in Orphan Basin: report

"The positive outcome of today's bids clearly demonstrates the additional value that this type of data and resource evaluation provides and the potential of our oil and gas resources to transform our province," said NOIA president and CEO Robert Cadigan.

The C-NLOPBannounced Wednesdaythat six out of 13 available parcels of land in the eastern Newfoundland region were awarded to different oil companies, that committed to undertake exploration valued at$513,972,018.

In the Jeanne d'Arc region, two of three available parcels were awarded to Huskey Energy with a total value of $244,017,776 in work commitments.