Offshore boundary regulations to be gazetted this week

Mines and Energy Minister Walter Noel announced today that the federal regulations establishing the boundary between Newfoundland and Labrador and Nova Scotia in the Gulf of St. Lawrence will be gazetted this week. The minister made the announcement during his speech to the Newfoundland Ocean Industries Association (NOIA) this morning.

"This is a very positive step in the advancement of seismic work and exploration drilling to take place in the Laurentian Sub-basin," said Minister Noel. "This province and Nova Scotia have been waiting since April of last year for the federal government to finalize this process. I am very pleased that we can now look forward to some initial seismic work to occur in this new frontier region of our offshore as early as next year.

"The Geological Survey of Canada estimates that approximately 600-700 million barrels of oil and 8-9 trillion cubic feet of natural gas could be present in this area. Companies that have interests in this area can now move forward with developing and planning their seismic activities for the future."

In his speech, Minister Noel also discussed several other important issues in our offshore area including the province�s investment climate, encouraging new investment and promoting our resources.

"This government is continuing to promote our offshore resources to national and international investors. I have recently participated in several international conferences including the Offshore Technology Conference in Houston and the Energy Council of America Conference in Washington, D.C. We must continue to promote ourselves to the investment community to ensure they are aware of our potential.

"We must also ensure that our fiscal regimes and regulatory framework is competitive and attractive for industry. Government will continue to work with our industry partners to solidify our place as an investment destination in the global petroleum industry."

Speaking Notes - Minister of Mines and Energy, Walter Noel

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

2003 06 16                                    12:40 p.m.