The province�s fourth offshore oil project achieved another milestone with today�s opening of a local headquarters responsible for leading the Hebron project through its various phases towards development.

"We entered a new era in this province with the signing of the Hebron agreement last August and we are now seeing the pieces coming together on the first phase of this development project," said the Honourable Danny Williams, Premier of Newfoundland and Labrador. "We are full partners in this development through our energy corporation, Nalcor Energy, and we look forward to a long and mutually successful relationship with our Hebron co-venturers."

The opening of the Hebron office in St. John�s follows the filing last month of the Hebron project description with the Canada-Newfoundland and Labrador Offshore Petroleum Board (CNLOPB). The filing of the description by the project operator, ExxonMobil Canada, is one of the first regulatory steps towards development. The project is currently in the pre-Front End Engineering Design phase with construction expected to begin in 2012, employing 3,500 people at peak.

"Each step we take gets us closer to project sanction and ultimately peak construction employment," said the Honourable Kathy Dunderdale, Minister of Natural Resources. "Today represents another exciting milestone in the development of the project and we look forward to the valuable local benefits this will provide to the people of the province. We are guaranteed a minimum of one million person-hours of project team activities before initial production and the opening of this office brings us one step closer to that reality."

The project description filed with the CNLOPB outlines all aspects of the project�s development throughout the various phases. The CNLOPB is currently reviewing the document and has initiated the environmental assessment process. The project description can be found at //www.cnlopb.nl.ca/environment/hebron.shtml.

The Hebron oilfield was discovered in 1981 and is located approximately 350 kilometres southeast of St. John�s in the Jeanne d�Arc Basin. It is estimated to contain over 581 million barrels of recoverable reserves with an expected lifespan of 20 to 25 years. First oil is expected between 2016 and 2018 with peak production of approximately 150,000 barrels a day within the first two years.

The Hebron agreement provides the province with a 4.9 per cent equity stake and a new super-royalty regime of 6.5 per cent when monthly average oil prices exceed US$50 West Texas Intermediate. For more information on the project, please visit //www.releases.gov.nl.ca/releases/2008/exec/0820n04.htm

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2009 04 29                                                      1:00 p.m.