Suncor Energy : First Exploration Well At Shelburne Basin Non-commercial

(RTTNews) - Suncor Energy Inc. (SU.TO, SU) said that it has been advised by the operator of the Shelburne Basin joint venture exploration project, Shell Canada Limited, that the drilling of the first exploration well has been completed and it is non-commercial.

As a result, in the third quarter of 2016 Suncor will write off its share of the cost of the well which, under the commercial terms of Suncor's farm-in agreement, is expected to be about C$105 million.

The Shelburne Basin deepwater exploration project is located approximately 250 kilometres offshore, south of Halifax, Nova Scotia. Joint venture participants are operator Shell Canada Limited (50 per cent), ConocoPhillips Canada East Coast Partnership (30 per cent) and Suncor (20 per cent).