Natural Resources
December 1, 2008

Offshore Land Sale Attracts Two New Bids

Successful bids on offshore parcels in the Sydney Basin and Western Newfoundland Offshore Region brings the total value of work commitments in the 2008 Calls for Bids to $132 million.

The Canada-Newfoundland and Labrador Offshore Petroleum Board (C-NLOPB) announced the results of the 2008 Calls for Bids in two offshore areas (NL08-3 and NL08-4) Monday. Successful bids were received on two of the five parcels offered � one each in the Sydney Basin and Western Newfoundland Offshore Region � valued at $1.8 million and $600,000 respectively, for a total of $2.4 million in work commitments.

"Over the past two years, we have attracted over $300 million in work commitments in our offshore, bringing the total value of the work commitments on the books to over a billion dollars," said the Honourable Kathy Dunderdale, Minister of Natural Resources. "The Sydney Basin is a relatively frontier basin with little existing information to date, so it is positive to see an existing player like Husky moving out there. We are also pleased to see PDI Production expand their interest on the west coast as they also continue with their onshore development.

"The successful awarding of these two parcels by players knowledgeable in the offshore region is evidence that the companies have confidence in Newfoundland and Labrador as an oil and gas producing region. It is especially positive to see PDI Production involved given the difficulty these uncertain financial times are causing for junior exploration companies when it comes to raising capital."

The C-NLOPB released the following results of the land sale:

Call for Bids NL08-3 (Sydney Basin)
Parcel 1 (271,891 hectares)
Husky Oil Operations Limited (100 per cent)

Call for Bids NL08-4 (Western Newfoundland and Labrador Offshore Region)
Parcel 1 (211,985 hectares)
PDI Production Inc. (100 per cent)

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Media contact:
Tracy Barron
Director of Communications
Department of Natural Resources
709-729-5282, 690-8241

2008 12 01                                                    4:15 p.m.

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