In August 2009, Nalcor Energy - Oil and Gas announced it had acquired an average 67 per cent working interest in three onshore exploration permits in Parsons Pond. Nalcor acquired its working interest from Leprechaun Resources Ltd. and as Operator with its joint venture partners, will drill three wells in its first onshore drilling program. The Western Newfoundland Parsons Pond prospects include three exploration permits covering 103,000 acres.

Nalcor's main operational objective of this onshore exploration program was to gain information from this well which will allow further insight and assessment of the geology and thus of the petroleum potential of this area.

In preparation for the Parsons Pond drilling program, Nalcor Energy undertook an extensive environment approval process for the Parsons Pond onshore exploration project on the province's West Coast. Nalcor followed all necessary compliance procedures and ensured all necessary permits were in place before drill site and road construction began. For more information regarding Nalcor's environmental approval process, please view the statement issued by Nalcor.

In May 2010, Nalcor announced that the first well of the Parsons Pond Drilling Program, Nalcor et al Seamus, which was started on February 16, 2010, reached the planned total drilling depth of 3,160 meters.  Testing on this well was completed in January 2011. 

In December 2010, Nalcor announced that the second well of its Parsons Pond Drilling Program, Nalcor et al Finnegan, which spud in early September, has reached total drilling depth of 3,130 meters.  Natural gas was encountered during drilling. The well is currently suspended as the data is reviewed and next steps determined.

On February 17, 2011, Nalcor and its partners announced their intention not to pursue drilling of Nalcor et al Darcy well in the Parsons Pond onshore exploration program.

The first two wells encountered gas shows while drilling. An analysis of the data obtained from the first two wells show that drilling in this third location, which is located directly between the first two wells, will likely result in similar results and provide limited additional information about this area's oil and gas potential.

The Company is currently focusing its efforts on analyzing and understanding the extensive dataset obtained from drilling the first two wells, and testing conducted at the first well, Nalcor et al Seamus. The results of our drilling, testing and seismic analysis have provided good quality data that has advanced our understanding of the West Coast basin. We continue to analyze the data gathered to date and are committed to further evaluation of the petroleum potential of the basin.

In addition to Nalcor Energy, there are four other project partners with varying holdings in the three permits: Leprechaun Resources Ltd.; Deer Lake Oil and Gas Inc.; Investcan Energy Corporation; and Vulcan Minerals Inc.