The Canada-Newfoundland and Labrador Offshore Petroleum Board (C-NLOPB) announced today the results of the 2007 Call for Bids for exploration rights in the Labrador Offshore Region. Bids were awarded on four parcels of land totalling $186.4 million. The total dollar value of work commitments in these bids represents the third largest in the province�s history.

"We are excited with the diverse range of interest shown in our Labrador Offshore Region," said the Honourable Kathy Dunderdale, Minister of Natural Resources. "Our success attracting new and returning investors to this area demonstrates its great prospectivity and the confidence industry has in our resources and our province. This latest round of bidding brings gas development in the province another step closer to reality."

The four parcels cover 939,678 hectares of land in the Labrador Offshore Region. The parcels were awarded to:

These parcels are adjacent to significant discovery licences where over four trillion cubic feet of gas has been discovered to date.

"The bidding by a diverse group of players indicates that the Natural Gas Royalty framework articulated in the Energy Plan is working to attract investors and to encourage additional exploration activity," said Minister Dunderdale. "The department is pleased that its efforts to promote the tremendous potential of the Labrador Offshore Region has been successful."

Once the bidders satisfy the C-NLOPB�s Call for Bids requirements, the board will issue exploration licences. The exploration licences are subject to approval by the minister.

To date, approximately 2.84 billion barrels of oil and 10.9 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.

The C-NLOPB also issued Calls for Bids on 10 other parcels around the island earlier this year, which will close this fall. This adds to the growing list of promising exploration opportunities in Newfoundland and Labrador.

The full details of the 2007 Land Sale Results Labrador Offshore Region Call for Bids NL07-2, as well as the 2008 Calls for Bids are available online at www.cnlopb.nl.ca.

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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 09 11                                                      3:55 p.m.