Minister encouraged by Shell Canada�s announcement
to join Orphan Basin Consortium

Ed Byrne, Minister of Natural Resources, welcomed the announcement that Shell Canada is re-activating its seismic and exploration operations in Newfoundland and Labrador�s offshore. Shell Canada announced today that it has joined the ExxonMobil Canada, Chevron Canada and Imperial Resources consortium. The consortium has a significant interest in the Orphan Basin since acquiring rights in the area in 2003.

"I am quite pleased to note that Shell Canada has chosen to return to our offshore. This is further evidence of momentum and demonstrates the attractive nature of Newfoundland and Labrador�s offshore oil and gas potential. My officials and I look forward to working with Shell Canada as they embark on this commitment," said Minister Byrne.

According to Shell Canada, the company has acquired a 20 per cent interest in the eight exploration licences in the Orphan Basin. They look forward to returning to an area they last explored in the early part of the 1990s.

The Canada-Newfoundland and Labrador Offshore Petroleum Board�s (CNOPB) 2003 Call for Bids closed on December 17, 2003. This resulted in successful bids for eight parcels located in a deep water area lying to the north of the Jeanne d�Arc and Flemish Pass Basins. This area is referred to as the Orphan Basin. A total of $673 million was received in work commitment bids for the eight parcels from an original consortium that included ExxonMobil (25%), Imperial Oil (25%) and Chevron Canada (50%). This is the most successful land sale in the province�s history -- the previous record being $192 million in 1999.

"Exploration is critical to our industry�s growth," said Mr. Byrne. "Shell Canada�s participation in the 2005 3-D seismic program in the Orphan Basin brings us another step closer to realizing the full potential of our offshore resources."

Media contact: Carmel Turpin, Communications, (709) 729-5282, 685-4624