ST. JOHN’S, N.L. – A federal-provincial regulator has dismissed a Halifax-based energy company’s request for a prohibition order on its proposal to drill an exploration well in the Gulf of St. Lawrence.
In January, Corridor Resources applied for the order in a bid to stop an environmental assessment process from eating up time on its licence to drill in an area known as Old Harry.
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The company said it wanted the strategic environmental assessment completed first before proceeding with its project.
But in a statement today, the Canada-Newfoundland and Labrador Offshore Petroleum Board announced it has rejected the application, saying it was premature.
Corridor’s plans for Old Harry have angered environmental groups that say drilling should not be allowed in a sensitive marine area.
The region has also been the source of discord between Quebec and Newfoundland and Labrador because it straddles a disputed boundary between the two provinces.
Old Harry has been estimated to hold up to two billion barrels of recoverable oil – twice the size of Hibernia east of St. John’s, N.L.
But it’s not clear whether the geological structure of the site and other factors will be conducive for hydrocarbon development.
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