Decision on Terra Nova production rate increase

In August 2002 Petro-Canada made application to the Canada-Newfoundland Offshore Petroleum Board (C-NOPB) to increase the annual oil production rate for the Terra Nova oil field.

The C-NOPB announced today its decision to increase the annual oil production rate for the Terra Nova field from 100,600 barrels per day (36.7 million barrels/year) to 150,000 barrels per day (54.8 million barrels/year) effective from December 2, 2002. The decision also allows the board to further increase the annual rate up to a maximum of 200,000 barrels/day (73.0 million barrels/year) after the consideration of appropriate regulatory, administrative and technical criteria.

Since production at any point is subject to reservoir performance and good reservoir practice, the actual level of production on any given day may vary up to maximum rates approved.

The C-NOPB�s decision report Decision 2002.01: Respecting the Amendment to the Terra Nova Development Plan, October 2002 is available on its Web site at www.cnopb.nfnet.com.

Reference: H.H. Stanley, Chairman and CEO

Media contact: Edsel Bonnell, Public Information Coordinator, (709) 778-1440.

2002 12 03                                       1:30 p.m.