ExxonMobil confirmed Thursday that it will drill a second exploration well in the Orphan Basin offshore Newfoundland in 2008.
The well had been forecast but until Thursday, the oil giant had been reluctant to commit to drilling.
Its first well in the deep water area north of the Jeanne d'Arc Basin - site of current offshore production at Hibernia, White Rose and terra Nova - cost an estimated US$200 million.
The Orphan Basin is located approximately 390 kilometres northeast of St. John's. The area is estimated to hold as much as eight billion barrels of oil. Existing exploration parcels are both inside and outside Canada's 200 mile exclusive economic zone. Water depth ranges from 250 metres in the western portion to over 2500 metres in the centre. More detailed information on the area is contained in the environmental review conducted for the offshore regulatory board in 2003.
Also on Thursday, ExxonMobil reported third quarter profits were down 10% form the same period in 2006.
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