Canada-Newfoundland Offshore Petroleum Board restricts oil production at Hibernia

December 22, 1998
(Mines and Energy)

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

The Canada-Newfoundland Offshore Petroleum Board announced today that it had imposed further oil production rate restrictions at Hibernia. Hal Stanley, board chairman and chief executive officer, said that the Hibernia Management and Development Company Limited (HMDC) has been notified that, effective January 1, 1999, oil production is to be limited to 10,800 m3/d (68,000 barrels per day) until such time the surplus gas produced during oil production can be conserved by re-injecting it into the Hibernia reservoir. The board will review the rate restriction each month until the company can demonstrate its ability to re-inject gas on a sustained basis.

During December, the Hibernia field operated under a previously imposed rate restriction that allowed oil production to average about 15,474 m3/d (97,330 barrels per day). Mr. Stanley said he hoped the need for these measures would be temporary, as HMDC is scheduled to bring an additional gas injection well into service during January 1999 and has revised its drilling program to drill further gas injection wells earlier than was previously planned.

For general information regarding this news release, please contact: Hal Stanley, Chairman and Chief Executive Officer, (709) 778-1456.

1998 12 22 12:00 p.m.

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