Production Lease 2002-01(A)

PL2002-01(A) allows for the production of hydrocarbons from an onshore area on the Port au Port Peninsula, western Newfoundland.  The initial lease, issued in 2002, is the first and only onshore production lease granted by the Province of Newfoundland and Labrador.

PL2002-01(A) lies over the Garden Hill Field Trend, which is a proven hydrocarbon bearing accumulation that is estimated to contain between 83 and 341MMBO in-place based upon internal reservoir models, increasing to 136 and 591MMBO including the mapped offshore extent.  PL2002-01(A) itself covers an area of 16km² and holds between 21 and 97MMBO of the total estimate for the Garden Hill Field Trend. 

Initially discovered in 1995 by Hunt Oil with the "PAP#1" well, the conventional Lower Ordovician, Aguathuna Formation reservoir has since been penetrated by three appraisal side-tracks, which support the theory that reservoir productivity is linked to hydrothermal alteration.  Extensive testing at the Garden Hill Site observed a lack of pressure depletion, indicating that a minimum connected volume in excess of 100 million barrels of oil is present in the Garden Hill Field Trend.  The oil produced has been of high quality (51° API).

The PaP#1 well which produced over 2,000 barrels per day when initially drilled was followed by two sidetracks from PAP#1, the second of which (ST#2) produced oil at the rate of 200 barrels per day during tests.  Prior to re-entry in January 2007, production tests from Garden Hill Field produced over 22,000 barrels of oil. 

In January 2017, our wholly owned subsidiary, Enegi Oil Inc. entered into a 5 year profit sharing agreement with PVF Energy Services Inc.(PVF). Under this agreement PVF will fully fund a work programme to restore production and will cover 100% costs of ongoing operations in exchange for 50% of revenues, following recovery of its costs in accordance with the agreement.  Nu-Oil remain 100% owner and operator of PL2002-01(A). 

In August 2017 the lease was extended until 11 August 2022 by the Department of Natural Resources of the Provincial Government of Newfoundland and Labrador.

Updates regarding the licence extension, profit sharing agreement and work programme are available in our Regulatory News section. 

Current Status

As per the announcement on 8 May, the DNR have approved the production test at Garden Hill. PVF are completing the clean-up of the well tubing and performing the routine pre-flow checks required prior to commencement of the Test.  This remains ongoing as a result of recent extreme weather in the area that disrupted operations.

The Test is a significant milestone for Enegi Oil Inc. ("Enegi"), Nu-Oil's wholly owned subsidiary, which has been operating in Newfoundland since 2006 and has remained committed to the region through some very difficult times both for the company and for the industry as a whole.  Enegi has invested significant resource and capital in geological and reservoir analysis, interpretation and modelling, as well as in drilling campaigns, workover operations ongoing site operations; as a result of this investment, it holds the most detailed and robust reservoir model of the Port au Port region as a whole, which supports Enegi’s ongoing belief in the potential of Garden Hill and also leaves the company well placed to evaluate and participate in other projects in the wider area.

Garden Hill - 22 May 2018

Garden Hill 22 May 2018

Recent Photos from Garden Hill

Garden Hill 2018

Creating the site at Garden Hill

Creating the site at Garden Hill

Drilling at Garden Hill

Drilling at Garden Hill

Flowing the Well - Production Operations 2013

Garden Hill 2013



Heads of Terms agreed with PVF Energy Services Inc. for a Farm-In to PL2002-01(A).


Programme for Production Test approved by Department for Natural Resources.


Onshore petroleum lease PL2002-01(A) is renewed for a period of 5 years, expiring on 11 August 2022.


Work programme approved by DNR. PVF Energy Services commence first stage of operations aimed at restoring production.


Production Sharing Agreement signed with PVF Energy Services Inc. to resume operations.


PaP#1-ST#3 well flowed for total of 214 hours, producing 1,731 barrels of oil at that time.


Acid squeeze conducted on ST#3 to improve productivity. Initial results suggest ST#3 now has an absolute open hole flow potential of 310 boepd.

Lease renewed.


Chemical soak conducted on ST#3 to clear wax from around the wellbore to stimulate flow and pressure recovery.


Flow tests on ST#3 whilst assessing potential waxing problem.


New sidetrack (ST#3) drilled within the Upper Aguathuna reservoir. Completed December 2008.


Application to re-enter the well is successful.

Flow test conducted on PAP#1. Produced 4,315bbl oil, 15mscf gas during testing.

TRACS contracted to write Competent Persons Report (CPR).


PDIP (latterly named Enegi Oil Inc.) farms into a 33% interest in a portfolio of petroleum rights that includes PL2002-01 and EL1070.  Subsequent transactions in later years resulted in Enegi Oil Inc.'s owning 100% interest in PL2002-01(A) and EL1070. 


PAP#1 opened, acidized and produced 10,500bbls oil, 5000bbls water, 48MMscf gas.

CIVC commences commissioning of PAP#1 for production.

Two sidetracks from PAP#1 are drilled (ST#1 and ST#2).

ST#1 is abandoned as non-commercial. Encountered limestone in target payzone rather than the target Hydrothermal Dolomite.

ST#2 produces oil at the rate of 200 barrels per day during testing.


The Garden Hill Field discovered by Hunt Oil with exploration well Port au Port #1 (PAP#1).  Well initially produced over 2,000 barrels per day.

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