Minister Noel releases geological reports on offshore land parcels

Mines and Energy Minister Walter Noel today released two geological reports relating to 14 offshore land parcels being offered in this year�s Call for Bids which closes on December 17, 2003.

The larger of the two reports was prepared by an independent consultant, G&G Exploration Consulting of Calgary, Alberta, and relates to the 12 parcels located in the Orphan Basin. The smaller report, prepared by the Department of Mines and Energy, relates to two parcels being offered in the Flemish Pass Basin.

"We are very pleased to offer these reports to industry in an effort to provide valuable information on the geological potential of these parcels," said Minister Noel. "It is our hope that this information will bring focus to the petroleum potential of these areas and encourage additional interest in this year�s Call for Bids, and offshore exploration in general."

The G&G Exploration Consultants report was based on new proprietary data that was used with the permission of Geophysical Services Incorporated of Calgary. This data is superior to the older data that was acquired in the Orphan Basin during the 1970s and 1980s, and provides a much better view of the basin�s geology.

"The report concludes that the Orphan Basin contains similar rocks to those found in the Jeanne d�Arc Basin, an area that is home to Hibernia, Terra Nova and White Rose," said Minister Noel. "In addition to discussing the geology of the Orphan Basin and of the individual parcels, the consultant has carried out a preliminary resource assessment on 15 structures that have been identified in the Call for Bids parcels. The consultant has concluded that several of these structures have the potential to contain in excess of one billion barrels of recoverable oil.

"We are also encouraged by the results of the report compiled by the Department of Mines and Energy with respect to the two Flemish Pass parcels. These areas also show the presence of large prospects which could contain commercial quantities of oil and gas.

"The information contained in these studies is very encouraging. There is evidence of undrilled structures with huge potential which clearly demonstrates the untapped possibilities of our offshore area. I am hopeful that we will see serious interest in this year�s Call for Bids."

Copies of the report can be found at www.gov.nl.ca/mines&en/oil/callforbids

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

2003 09 17                                       1:55 p.m.