Developments Demonstrate Attractiveness of Province�s Oil Industry

The announcement today by Husky Energy of the increase in the recoverable resources associated with its 2006 drilling program in the Jeanne d�Arc Basin as well as the success of the 2006 offshore land sale demonstrate that the province�s oil and gas industry is a vibrant one and remains an attractive place for investment.

�The increase in these recoverable resources is another sign that our projects have tremendous growth potential. The proven resources in the prolific Jeanne d�Arc Basin have increased significantly from original projections,� said the Honourable Kathy Dunderdale, Minister of Natural Resources.

Husky Energy today announced the successful completion of its 2006 Jeanne d�Arc drilling program. The drilling of two wells � North Amethyst K-15 and White Rose O-28 � has resulted in an increase in the assessment of recoverable resources in the basin by 190 million barrels.

Also today, the Canada-Newfoundland and Labrador Offshore Petroleum Board (CNLOPB) announced the results of the 2006 call for bids for exploration rights. Successful bids were received for six of the eight parcels offered � three off the west coast and three in the Jeanne d�Arc Basin.

�Our successful land sale indicates to us that oil companies continue to have confidence in our industry, our prospectivity and the business environment in the province,� said Minister Dunderdale.

The sales are valued at $32.4 million and demonstrate that oil companies have continued confidence in the province�s oil and gas industry and are willing to invest in its development, which bodes well for continued exploration activity. In the last five years, industry has committed some $830 million in work expenditure bids.

�These developments show that the province continues to attract investments and that our projects continue to exceed expectations,� the minister said. �With production back at Terra Nova after the FPSO refit, drilling activity in the Orphan Basin where a Canadian record has been set for deep water drilling with the spudding of the Great Barasway well, and renewed activity in other basins, our industry is gaining momentum and profile. These are exciting developments that demonstrate the quality and potential of our industry.�

The province will continue to aggressively develop policies that advance the Petroleum Industry in the best interest of the people of Newfoundland and Labrador. This is why the province is taking the time and effort necessary to complete a comprehensive long-term Energy Plan that will address such issues as the Natural Gas Fiscal Regime and the Land Tenure System.

Media contact:
Tracy Barron
Director of Communications
Department of Natural Resources
709-729-5282, 690-1703
TracyBarron@gov.nl.ca

2006 11 16                                                        4:00 p.m.