November 6, 1997
(Mines and Energy)

Minister responds to announcement of increased recoverable reserves at Hibernia

Charles Furey, Minister of Mines and Energy, responded to Mobil Corporation's announcement earlier today of the new target date for first oil from Hibernia and an increase in recoverable reserves.

"I am very pleased to hear that first oil from the Hibernia project is expected ahead of schedule," says Furey. "First oil will be an important event in the history of the province. It will signal the shift from the development phase of our petroleum industry to the production phase."

Mobil announced it has increased recoverable oil reserve estimates at the Hibernia field from 615 million barrels to 750 million barrels. "With an estimated three billion barrels of crude oil in place, Hibernia is the largest discovered field to date in the Jeanne d'Arc Basin," says Furey. "Today's announcement confirms our longstanding belief that Hibernia has a great upside potential. The province will share in this upside through increased revenues from the project."

Furey added: "I am also optimistic that the next project, the Terra Nova field, will yield more than the estimated 400 million barrels of recoverable oil resources."

The minister concluded by saying that once again the resource potential of the Newfoundland offshore area has been confirmed in a positive manner. "I look forward to even more positive announcements in the future, as oil and gas development proceeds offshore Newfoundland and Labrador."

Contact: Tara Laing, Communications, (709) 729-4890.