Statoil's Canadian subsidiary announced it made an oil discovery off the northeast coast of Newfoundland and Labrador alongside its joint venture partner, Husky Energy.
"It is exciting that Statoil is opening a new basin offshore Newfoundland," Tim Dodson, executive vice president of Statoil's exploration division, said in a statement Thursday. "This brings us one step closer to becoming a producing operator in the area."
Statoil said it estimates its Bay du Nord exploration well off the eastern Canadian coast holds between 300 million and 600 million barrels of recoverable oil.
The Bay du Nord prospect is about 12 miles south of the company's Mizzen discovery. That discovery, which Statoil announced last year, is estimated to hold at least 100 million barrels of oil.
Crude oil production off Newfoundland declined from 370,000 barrels per day in 2007 to less than 200,000 bpd last year because of maintenance issues.
Dodson said more work in the region was required to confirm its reserve estimates before it joins Huskey in determining the best way to develop the frontier Flemish Pass basin.