October 2, 1996
(Mines and Energy)

The following is being distributed at the request of the Canada- Newfoundland Offshore Petroleum Board:

1996 Land Sale Results

The Canada-Newfoundland Offshore Petroleum Board today announced the results of the 1996 Call for Bids for exploration rights in the Newfoundland offshore area which closed on September 30, 1996. Bids were received on all of the eight parcels offered. Parcels 1 to 4 are located on Grand Banks North and Parcels 5 to 8 offshore West Coast Newfoundland. The board has conditionally selected winning bids on seven of the eight parcels. The board did not select a bid for Parcel No. 8 as the work expenditure commitment offered was judged to be too low. The bids represent the expenditures which the bidders commit to make in exploring the parcels during the initial five-year period of a nine-year term exploration licence.

• The successful bidders were:
  Parcel No. 1 (12,351 hectares) - $31,318,000
  Chevron Canada/Mobil Oil Canada/
  Petro-Canada

  Parcel No. 2 (60,600 hectares) - $64,875,450
  Petro-Canada/Mobil Oil Canada/
  Chevron Canada

  Parcel No. 3 (276,085 hectares) - $26,157,248
  Mobil Oil Canada/Chevron Canada/
  Petro-Canada

  Parcel No. 4 (29,967 hectares) - $ 3,125,000
  Mobil Oil Canada/Chevron Canada/
  Petro-Canada

  Parcel No. 5 (136,420 hectares) - $ 103,700
  Newfoundland Hunt Oil/PanCanadian/
  Mobil Oil Canada

  Parcel No. 6 (135,520 hectares) - $ 208,700
  Newfoundland Hunt Oil/PanCanadian/
  Mobil Oil Canada

  Parcel No. 7 (97,065 hectares) - $ 208,700
  Newfoundland Hunt Oil/PanCanadian/
  Mobil Oil Canada

Subject to ministerial approval and the bidders satisfying the requirements specified in the Call for Bids, the board will issue an exploration licence for each of the seven parcels in January 1997. The licences will be for a term of nine years, with an initial period of five years.

Contact: John G. Fitzgerald, Chairman (Acting), (709) 778-1452; or R. Paul Barnes, Legal and Land, (709) 778-1440.

NOTE: 
Illustrations showing the parcels are available by contacting the Communications and Consultation Branch at (709) 729-3610. These are also on the government's web site at www.gov.nl.ca/ under News Releases or What's New.