Natural Resources
April 2, 2008

Province Approves Decision on North Amethyst Development Plan

The Provincial Government has approved the Canada-Newfoundland and Labrador Offshore Petroleum Board�s (C-NLOPB) decision to permit the development of the North Amethyst oil field. Husky Energy, the operator of the White Rose development, estimates that North Amethyst can produce 70 million barrels of oil.

"This development will provide the people of the province with excellent overall value from this resource," said the Honourable Kathy Dunderdale, Minister of Natural Resources. "We are pleased to approve this C-NLOPB decision."

Husky submitted the development plan for North Amethyst to the C-NLOPB in August 2007. The board notified the province of its decision February 29, 2008.

"First oil production from North Amethyst could begin by late 2009, which is just three years after the field�s discovery date," said Minister Dunderdale. "This turnaround time shows Newfoundland and Labrador is a very effective and efficient place to do business."

The province signed a formal agreement on developing the White Rose Expansion oil fields with Husky, the province�s energy corporation, and Petro-Canada in December 2007. The agreement applies to lands around the original White Rose Development including North Amethyst, West White Rose and South White Rose Extension. The province approved the C-NLOPB�s decision to permit development of South White Rose Extension in September 2007.

The White Rose Expansion formal agreement provides the province with a five per cent equity stake and super royalties of 6.5 per cent on top of the 30 per cent in the generic royalty regime when oil prices are above US$50 per barrel.

"The formal agreement on the White Rose Expansion also provides industrial benefits commitments that all work that can be done in the province will be done in the province," said Minister Dunderdale.

The formal agreement and approved development plans reflect the principles the province set out in its 2007 energy plan, Focusing Our Energy. Through equity participation, royalties and local benefits, the Provincial Government is ensuring the people of the province and future generations will receive the best possible overall value from the province�s oil and gas resources.

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Media contact:
Tracy Barron
Director of Communications
Department of Natural Resources
709-729-5282, 690-8241
tracybarron@gov.nl.ca

2008 04 02                                                    1:30 p.m.


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