It's a study the provincial government hopes will attract even more investment than the Flemish Pass, which garnered $1.2 billion in bids last year.
Members of Newfoundland and Labrador's oil industry said the study is good news for a business that's been facing a downturn for years.
"The 25.5 billion barrels estimate is larger that the remaining estimate that Norway believes its offshore holds, which is 18 billion barrels of undiscovered resources, so this is a hugely important study at this stage in our resource development," said Raymond Collins, chair of NOIA.
"The industry is very excited with this announcement and we are looking forward to some early drilling to kick-start some more exploration and bring more equipment into the region to help further develop the industry."
Potential 25 billion barrels of oil in Orphan Basin: report - Newfoundland & Labrador - CBC News