Minister issues 2002 Onshore Request for Bids

Mines and Energy Minister Lloyd Matthews today announced a Request for Bids for the issuance of petroleum exploration permits in the onshore area of Newfoundland and Labrador. This Request for Bids follows a Call for Postings issued in April 2002 which invited interested companies to identify land parcels in western Newfoundland to be made available in a competitive bid process.

"Due to the expressions of interest received during this year�s Call for Postings, it was decided that the level of interest warranted a 2002 Request for Bids," said Mr. Matthews. "The successful companies who are granted permits to undertake exploration work on land parcels will have the exclusive right to drill and test for petroleum in the permit area."

Thirteen parcels of land, totaling 318,109 hectares, will be made available for competitive bidding. These parcels are located in the Parson�s Pond, Deer Lake and St. George�s Bay areas.

"This will be the fourth Request for Bids issued under section 17 of the Petroleum Regulations," said the minister. "Previous land sales that were held in 1992, 1993 and 1996, resulted in the issuance of 36 exploration permits. This has led to over $31 million being spent on onshore exploration in western Newfoundland since 1989."

This year�s Request for Bids will close on December 13. All bids are to be submitted in the form of work commitments and expressed in terms of the total dollar amount to be expended on a parcel of land for the five year primary term of the exploration permit.

Minister Matthews noted that he is optimistic that this Request for Bids will be successful, resulting in the issuance of exploration permits and leading to new exploration activity and benefits to the province.

For more information regarding this year�s Request for Bids, please visit the Department of Mines and Energy Web site at: www.gov.nl.ca/mines&en/request

Media contact: Darrell Mercer, Communications, (709) 729-5777.

2002 09 27 11:05