Minister welcomes arrival of seismic vessel

Ed Byrne, Minister of Natural Resources, welcomed today the arrival of the MV Western Neptune, the largest seismic vessel in the world which will be carrying out a 3D seismic exploration program in the Laurentian sub-Basin. The vessel is operated by WesternGeco and has been contracted by ConocoPhillips, which holds the exploration licences for this basin with its partners Murphy Oil Ltd. and BHP Billiton Ltd.

"I am very pleased to see that 3D seismic exploration work is being carried out in the Laurentian sub-Basin this year," said Minister Byrne. "This basin is a virtually unexplored area and there is room for optimism of what oil and gas reserves this basin holds." 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.

The MV Western Neptune - which is 92.5 metres in length and capable of towing up to 16 seismic streamers - encompasses the latest in technology in streamer steering, a full in-sea acoustic network and a calibrated, marine source. The seismic program, which will begin later this month and continue into October, will be carried out over an area of approximately 2,000 square kilometres.

"I commend ConocoPhillips on the use of this vessel as part of its exploration program this year," said Minister Byrne. "By using this technologically-advanced vessel, ConocoPhillips will be provided with detailed information that will assist the company plan its future drilling programs. I wish the company every success in its search for oil and gas reserves."

Minister Byrne indicated the exploration work by ConocoPhillips is part of an exciting round of exploration activity taking place this year offshore Newfoundland and Labrador.

"There certainly has been a resurgence of interest in our offshore by some key industry players," Minister Byrne stated. "We have commitments of over $800 million in exploration activity for the next several years, including areas such as the Laurentian sub-Basin and the Orphan Basin."

Minister Byrne noted that 3D seismic activity will also be undertaken in the Orphan Basin. The exploration rights to this area have been acquired by a consortium of ExxonMobil, Chevron Resources, Imperial Resources and Shell Canada. As well, Husky Energy plans to conduct exploration drilling in the South Whale Basin which is located south of the Hibernia field. This marks the first time a well has been drilled in that basin since 1987. Furthermore, Husky plans to conduct delineation drilling from the White Rose field this year.

"We recognize the need for more exploration as our province�s offshore has some of the most unexplored basins in the world," said Minister Byrne. "We see there is great potential left to be discovered and look forward to realizing the opportunities that continue to evolve in the development of our petroleum resources."

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

2005 06 13                       2:10 p.m.