Executive Council
Natural Resources
October 1, 2015

Advancing Our Oil and Gas Sector

Premier Provides Update on Oil and Gas Resources

Today, the Honourable Paul Davis, Premier of Newfoundland and Labrador, announced that the in-place oil and gas resource potential is 12 billion barrels of oil and 113 trillion cubic feet of gas for the area covering the 11 parcels currently on offer in the Flemish Pass. These parcels are up for bid in the first ever scheduled licence round closing in November 2015.

�This is an exciting day for the people of Newfoundland and Labrador and the future of our province�s oil and gas industry. Today�s announcement builds on the foundation we have established in our Energy Plan, and demonstrates that tremendous opportunities exist for our province to become a global oil and gas player. The 12 billion barrels is in an area that represents just two per cent of our entire offshore. Just imagine the potential of the other 98 per cent of our offshore. These discoveries did not happen by accident, chance, coincidence, sheer luck or a twist of fate. They happened by design. Today, we develop the seismic data and we sell it to the oil companies, we develop the oil fields as a partner with the industry, and we will negotiate deals with our partners that will maximize the returns to Newfoundlanders and Labradorians. The oil will only leave our fields when and if we are satisfied that we have secured every benefit possible for the people of the province.�
- The Honourable Paul Davis, Premier of Newfoundland and Labrador

Future licence rounds will follow the same process with detailed resource assessments being conducted over those areas, with results released prior to licence round bid closing.

�We have long understood the importance of strategically developing our oil and gas resources as outlined in our long-term Energy Plan almost a decade ago. We knew that the future of our industry depended on our ability to attract companies to invest in offshore Newfoundland and Labrador. With the quality data released today and the upcoming call for bids, we are well on our way to achieving that goal.�
- The Honourrable Derrick Dalley, Minister of Natural Resources

The resource update is for less than two per cent of Newfoundland and Labrador�s offshore area, approximately 24,000 square kilometres of a 1.5 million square kilometre area.

�Nalcor is focused on finding new oil and gas resources for the people of the province. The study released today provides the province and industry with detailed knowledge that there is much more oil and gas to be developed in our offshore. If you consider Hibernia � our largest oil and gas discovery that started Newfoundland and Labrador�s oil and gas industry � at 12 billion barrels of oil potential we will have several more Hibernia-sized developments in an area covering a very small percentage of our offshore. We are seeing similar prospectivity in other areas - it is safe to say offshore Newfoundland and Labrador is poised for tremendous growth.�
- Ed Martin, President and CEO, Nalcor Energy

The resource update was completed by Beicip-Franlab, an international petroleum consultancy firm based in Paris, France.

�Through our detailed and scientific analysis of new data for offshore Newfoundland and Labrador, the oil and gas potential of the Flemish Pass area shows that it contains abundant oil and gas resources.�
- Dr. Jean Burrus, CEO, Beicip-Franlab

To access a copy of the new resource update, visit: www.nalcorenergy.com/exploration

QUICK FACTS

• Today, the Honourable Paul Davis, Premier of Newfoundland and Labrador, announced that the in place oil and gas resource potential is 12 billion barrels of oil and 113 trillion cubic feet of gas for the area covering the 11 parcels currently on offer in the Flemish Pass.
• These parcels are up for bid in the first ever scheduled licence round closing in November 2015.
• The resource update was completed by Beicip-Franlab, an international petroleum consultancy firm and covers less than two per cent of Newfoundland and Labrador�s offshore area, approximately 24,000 square kilometres of a 1.5 million square kilometre area.
• The oil and gas potential identified in this study shows that the province�s offshore has future potential for several developments in size to Hibernia, our largest oil development to date.

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Media contacts:

Heather MacLean Director of Communications Office of the Premier 709-729-3960 heathermaclean@gov.nl.ca	Donna Ivey Special Assistant, Communications Office of the Premier 709-729-3551 donnaivey@gov.nl.ca
Diana Quinton Director of Communications Department of Natural Resources 709-729-5282, 631-8155 dianaquinton@gov.nl.ca	Cara Pike Senior Communications Advisor Corporate Communications and Stakeholder Relations Nalcor Energy 709 737-1446, 709 685-9290 CaraPike@nalcorenergy.com
Jennifer Lancirica, Head of Communication Beicip-Franlab t. +33(0)1.47.08.81.81 c. +33 (0)6.37.27.58.97 e. jennifer.lancirica@beicip.com

2015 10 01                              2:25 p.m.