The offshore lands being offered in the 2008 Calls for Bids by the Canada Newfoundland and Labrador Offshore Petroleum Board (CNLOPB) demonstrate the broad appeal of the province�s oil and gas potential.

The CNLOPB today announced new Calls for Bids consisting of 10 parcels of land available for bidding in four exploration areas.

"The variety of parcels up for bids this year indicates the industry is interested in both our frontier as well as our proven offshore basins," said the Honourable Kathy Dunderdale, Minister of Natural Resources. "Last year, we saw a new Call for Bids consisting of four parcels offshore Labrador and now we have new calls for parcels on the island�s west, southwest and east coasts."

Two of the areas in this year�s Calls for Bids � in the vicinity of the Port au Port Peninsula and the Sydney Basin off the southwest coast � are in offshore basins that are relatively underexplored compared to the Grand Banks. Two of these parcels are on the west coast near the Port au Port Peninsula, where an onshore to offshore well is currently being drilled. Three of the parcels are in the Sydney Basin.

The two other areas being offered are offshore eastern Newfoundland, where the industry has already produced nearly one billion barrels of oil in the past decade. Three of these parcels are in the Central Ridge/Flemish Pass Basin, one just east of the White Rose field. Two are in the Jeanne d�Arc Basin. Exploration activity is already ongoing in the Central Ridge/Flemish Pass Basin with an exploration well planned for 2008.

"The new parcels in the Jeanne d�Arc Basin demonstrate the sustained prospectivity of the basin and the continued confidence of industry in the potential for further discoveries in this region," said Minister Dunderdale. "The nomination of parcels on the west and southwest coasts is a reflection of the tremendous potential industry sees in these areas."

As part of the process of identifying the parcels of land included in the annual Calls for Bids, the CNLOPB solicits interest from the industry through a nomination process of offshore lands. The parcels will be awarded to the companies who submit the bids representing the highest work commitments, which can include up to five per cent of their bid going into research and development and supporting education and training in the provincial oil and gas industry.

To date, approximately 2.75 billion barrels of oil and 10 trillion cubic feet of natural gas have been discovered offshore Newfoundland and Labrador. The province�s resource potential is considerably higher, with geoscientific data indicating another six billion barrels of oil and 60 trillion cubic feet of natural gas remain undiscovered around the province.

The Department of Natural Resources has geological reports available that highlight the regional geology and the exploration potential of our offshore basins. These are posted on the department�s website at www.nr.gov.nl.ca/mines&en/oil.

The full details of the 2008 Calls for Bids and closing dates are available online at the CNLOPB�s website at www.cnlopb.nl.ca.  The four parcels in 2007 Call for Bids for Labrador are scheduled to close August 1, 2008.

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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 06 06 1:35 p.m.