The Canada-Newfoundland Offshore Petroleum Board today announced the results of the 1997 Call for Bids for exploration rights in the Newfoundland offshore area which closed on December 4, 1997. Bids were received on all of the seven parcels offered and all bids satisfied the basic requirements of the Call. Four of the parcels receiving bids are located in the Jeanne d’Arc basin on the Grand Banks and three are located off the west coast of Newfoundland. The Bids represent the expenditures which the bidders commit to make in exploring the parcels during the initial 5-year period of a 9-year term exploration licence.

The following bids have been conditionally selected:

Parcel No. 1 (68,905 hectares)
– Norsk Hydro Grand Banks Inc.
– Chevron Canada Resources
– Mobil Oil Canada Properties
– Petro-Canada

$13,138,000.00

Parcel No. 2 (14,185 hectares)
– Chevron Canada Resources
– Mobil Oil Canada Properties
– Norsk Hydro Grand Banks Inc.
– Petro-Canada

$2,825,000.00

Parcel No. 3 (16,712 hectares)
– Petro-Canada
– Chevron Canada Resources
– Mobil Oil Canada Properties
– Norsk Hydro Grand Banks Inc.

$49,480,000.00

Parcel No. 4 (34,392 hectares )
– Mobil Oil Canada Properties
– Chevron Canada Resources
– Norsk Hydro Grand Banks Inc.
– Petro-Canada

$32,376,000.00

Land Maps of Parcels

• Grand Banks North
• Western Newfoundland

Although the bids which have been submitted for parcels 5, 6, 7 satisfy the basic requirements of the Call for Bids, the Board has not yet made a decision regarding the selection of any bid with respect to these parcels.

Subject to Ministerial approval and the bidders satisfying the requirements specified in the Call for Bids, the Board expects to issue an Exploration Licence respecting parcels for all selected bids in January, 1998. The Licences will be for a term of nine years, with an initial period of five years.

For further information, please contact:

John G. Fitzgerald
Chairman(Acting)
Tel: (709) 778-1452

D. Angus Taylor
Manager, Legal and Land
Tel: (709) 778-1458