Suncor to take $105-million hit on exploration well off Nova Scotia

Suncor Energy Inc.(SU.TO) will write off costs tied to an exploration well offshore Nova Scotia after the development failed to yield commercial volumes of oil.

The joint venture with Royal Dutch Shell Plc and ConocoPhillips Co. is located roughly 250 kilometres offshore, south of Halifax.

Suncor said it was told by Shell that the first exploration well had been completed but that it did not produce enough oil.

Suncor holds a 20-per-cent stake in the project and said it would write off its share of the costs in the third quarter, about $105-million after tax.