Offshore Canada licenses awarded

The Canada-Newfoundland and Labrador Offshore Petroleum Board has announced the results of the 2008 Calls for Bids NL08-1 and NL08-2 for exploration rights in the Newfoundland and Labrador Offshore area.

Offshore staff

ST. JOHNS, NEWFOUNDLAND & LABRADOR -- The Canada-Newfoundland and Labrador Offshore Petroleum Board has announced the results of the 2008 Calls for Bids NL08-1 and NL08-2 for exploration rights in the Newfoundland and Labrador Offshore area.

Bidding closed on Nov. 14 and successful bids were received on all five parcels offered totaling $129,892,000. Three of the successful bid parcels are located in the Central Ridge/Flemish Pass and two are located in the Jeanne d'Arc basin.

The bids represent the expenditures that the bidders commit to make in exploring the parcels during the initial five-year period of a nine-year term exploration license. If companies discover significant quantities of petroleum resources as a result of the exploration work, they may then seek a significant discovery license from the C-NLOPB.

The following bids have been accepted:

Call for Bids NL08-1 (Central Ridge/Flemish Pass)

Parcel 1 (138,200 ha)
Husky Oil Operations (40%)
Petro-Canada (40%)
Repsol Exploration, S.A. (20%)
$18,600,000

Parcel 2 (134, 227 ha)
Husky Oil Operations (67%)
Repsol Exploration, S.A. (33%)
$1,188,000

Parcel 3 (55,954 ha)
StatoilHydro Canada Ltd. (65%)
Husky Oil Operations (35%)
$18,724,000

Call for Bids NL08-2 (Jeanne d'Arc Basin)

Parcel 1 (19,430 ha)
Petro-Canada (50%)
StatoilHydro Canada Ltd. (50%)
$81,900,000

Parcel 2 (121,348 ha)
Husky Oil Operations (67%)
Repsol Exploration, S.A. (33%)
$9,480,000

Total:
$129,892,000

Subject to the bidders satisfying the requirements specified in the Call for Bids and Ministerial approval, the board will issue an exploration license for each of the five parcels in January 2009. The licenses will be for a term of nine years, with an initial period of five years.

11/18/2008

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