March 15, 2000
(Mines and Energy)

The Canada-Newfoundland Offshore Petroleum Board has announced a new call for bids for the province�s offshore area. There will be 14 parcels up for bid this year, with three located in the Jeanne d�Arc Basin, four in the Carson/Bonnition Basin, six in the South Whale Basin and one adjacent to the Newfoundland West Coast area. This amounts to 2,251,670 hectares of land.

As you are aware, the 1999 Call for Bids resulted in a record land sale, attracting work expenditure commitments in excess of $192 million, an increase from the previous high of $175 million in 1998. This is truly indicative of the confidence and strength of our offshore industry.

With Hibernia producing at 170,000 barrels per day, Terra Nova to begin production within a year and White Rose and Hebron/Ben Nevis moving forward, we are experiencing major growth in our petroleum sector. All of these fields are located in the Jeanne d�Arc Basin which has been the area of the offshore where activity has been focused to date.

Last year, industry acquired parcels in a new basin, the Flemish Pass, and we are optimistic that drilling will occur there in the near future. This year, industry is continuing the trend of moving into new areas with lands being posted in the Carson/Bonnition and South Whale Basins for the first time. This should lead to further exploration in these basins as well.

I am optimistic that a new wave of drilling in these relatively untested areas will provide the new discoveries that will lead to a continued expansion of our petroleum sector.

Companies interested in bidding on land parcels must submit their work expenditure bids by November 15, 2000, to the C-NOPB. Winning bids are solely based on the amount of money a bidder plans to commit to exploration on the parcel during the first five years.

The 2000 Call for Bids is another opportunity for companies to invest in a province that has a stable economic base, significant natural resources and development potential, a dedicated and competent work force, world-class research facilities and $1.2 billion worth of onshore infrastructure for our offshore oil and gas industry.

We look forward to another successful round of bidding and government remains confident that industry will continue to invest in the province�s offshore area.

2000 03 15                                     2:25 p.m.