Exploration off Canada’s Bay du Nord, on the Newfoundland coastline, has resulted in a significant oil discovery for international energy firm Statoil and its partner Husky.

The Norwegian oil giant, which has a presence in more than 30 countries around the world, confirmed a discovery of between 300 and 600 million barrels of recoverable oil on Thursday.

The major discovery at Bay du Nord was actually a result of side-track well that was completed this week following an initial discovery back in August. Statoil said the oil is light, with API gravity at 34 degrees, and exists in "excellent" Jurassic reservoirs with high porosity and high permeability. The company also confirmed additional prospective resources have been identified.

In an official statement from Statoil, Exploration Executive Vice President, Tim Dodson said, “"It is exciting that Statoil is opening a new basin offshore Newfoundland. This brings us one step closer to becoming a producing operator in the area.

"With only a few wells drilled in a large licensed area, totalling about 8,500 square kilometres [3,250 square miles], more work is required. This will involve new seismic as well as additional exploration and appraisal drilling to confirm these estimates before the partnership can decide on an optimal development solution in this frontier basin."

A relatively new face to the area, Statoil has confirmed its understanding of the basin and has opened a new oil play offshore Canada.  The Flemish Pass has the potential to become a core producing area for Statoil post-2020.

To read the full press release visit the Statoil site .