Offshore Staff

NEWFOUNDLAND AND LABRADOR, Canada -- Hydro and Husky Energy have discovered hydrocarbons during delineation drilling in the Jeanne d'Arc Basin offshore Newfoundland and Labrador.

The West Bonne Bay F-12 well is in significant discovery license (SDL) 1040, 320 km (199 mi) southeast of St. John's near the Terra Nova oil field. Under a farm-in agreement with Hydro, operator Husky Energy drilled the well using the jackup rigRowan Gorilla VI.

The jackup drilled the F-12 well to a TD 4,666 m (15,308 ft). Sidetrack well F-12Z further delineate the structure and gathered additional reservoir information. In both wells, hydrocarbons were encountered in the Upper Hibernia formation. Further analysis of core, fluid samples and wireline log data is continuing in order to estimate recoverable resources.

"Hydro is very satisfied with the drilling operation and the cooperation with Husky. We are encouraged by the result and will evaluate the find further to see if this can be developed commercially," said Johan Kr. Mikkelsen, president of Norsk Hydro Canada Oil & Gas.

Hydro operates West Bonne Bay with 72.22% interest. Husky Energy holds the remaining 27.78%.

12/05/2006