Minister says 2003 Call for Bids is positive news 
for province�s offshore petroleum industry

Mines and Energy Minister Walter Noel said today that the Canada-Newfoundland Offshore Petroleum Board�s (C-NOPB) 2003 Call for Bids for offshore land parcels is very positive news for this province, and our petroleum industry in particular.

The C-NOPB announced today that 14 land parcels will be up for bids, comprising a total of 3,167,445 hectares of offshore land. Interested parties now have until December 17 to submit their bids.

"The majority of these land parcels are located in new areas of our offshore," said Minister Noel. "New interest is being shown in our deep water areas such as the Orphan Basin and the Flemish Pass which hold great promise for new discoveries. The Orphan Basin is considered the largest basin offshore Newfoundland, but very little exploration has been completed in the area. Seismic surveys indicate that this area may contain large prospects, and we are hopeful that new exploration could yield future discoveries.

"We are also encouraged by the further interest being shown in the Flemish Pass Basin. Petro-Canada, Norsk Hydro and Encana are currently drilling the Mizzen prospect, their first exploratory well in the area, with more drilling planned at their Tuckamore prospect later in the year. We remain confident that new bids will be received for land parcels in this area, and more exploration will take place in this potentially petroleum rich area of our offshore.

"There remains $470 million in work expenditure commitments to be spent in offshore exploration by industry over the next five years, demonstrating our attractiveness as a investment destination. We have tremendous resource potential, with much of our offshore still relatively unexplored. Hibernia and Terra Nova continue to exceed expectations. We are extremely confident in our ability to deliver the White Rose project on time and within budget. Our facilities at Marystown, Bull Arm and St. John�s will meet these challenges, and the entire province will benefit.

"We also expect exploration activity to commence in the potentially resource rich Laurentian Sub-basin within the next several months. We will continue to push Hebron-Ben Nevis as our fourth development project. We have every reason to be extremely positive with respect to our offshore. Today�s announcement will only strengthen this important sector of our economy."

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

2003 04 15                                        3:15 p.m.