Minister welcomes decision on Laurentian Sub-basin exploration licences

Ed Byrne, Minister of Natural Resources, welcomed the announcement today by the Canada-Newfoundland Offshore Petroleum Board (C-NOPB) of eight new exploration licences for the Laurentian Sub-basin.

The issuance of these licences follows the successful completion of negotiations between the C-NOPB and the companies which held permits previously issued by the federal government. Once the boundary issue for the Laurentian Sub-basin offshore Newfoundland and Labrador was resolved, the C-NOPB initiated negotiations with the federal permit holders to convert those permits to exploration licences similar to those currently issued under the Atlantic Accord legislation. Seven of the new licences have been issued to a consortium representing ConocoPhllips Canada and Murphy Oil Company. A single licence was issued to Imperial Resources Ventures.

"I am very pleased to see that these negotiations have been completed," said Minister Byrne. "This decision will now end a 30-year moratorium on exploration in the Laurentian Sub-basin. It provides certainty to ConocoPhillips/Murphy Oil and Imperial Resources as well as to the oil and gas industry in general that the Laurentian Sub-basin is now open for more exploration."

To date, the ConocoPhillips/Murphy Oil partnership has spent over $23 million and with the new exploration licences has committed to additional expenditures of $18 million on its seven licences. Imperial Resources� commitment is for $1.5 million on its exploration licence.

"I look forward to these companies getting exploration back on track in the Laurentian Sub-basin. Particularly, I welcome ConocoPhillips� involvement since it marks the entry of a new player in our oil and gas industry," said Minister Byrne. "We are eager to see more exploration in this area." According to the Geological Survey of Canada, resource estimates total 600 to 700 million barrels of oil and eight to nine trillion cubic feet of natural gas in this area.

Media contact: Carmel Turpin, Communications, (709) 729-5282

2004 05 04                                         1:30 p.m.