The Canada-Newfoundland Offshore Petroleum Board today announced the results of the 1998 Call for Bids for exploration rights in the Newfoundland offshore area which closed on September 16, 1998. Bids were received on ten of the thirteen parcels offered. No bids were received on Parcels 8, 10 and 12 (see attached Land Plat). 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 (69,372 hectares)
Mobil Oil Canada Properties     30%
Chevron Canada Resources Limited     30%
Petro-Canada     20%
Norsk Hydro Canada Oil & Gas Inc     20%
$75,120,000.00

Parcel No. 2 (104,126 hectares)
Chevron Canada Resources Limited     30%
Mobil Oil Canada Properties     30%
Petro-Canada     20%
Norsk Hydro Canada Oil & Gas Inc     20%
$52,100,000.00

Parcel No. 3 (92,771 hectares)
Mobil Oil Canada Properties     50%
Chevron Canada Resources Limited     50%
$5,500,000.00

Parcel No. 4 (71,251 hectares )
Tatham Offshore Canada, Ltd.     100%
$1,000,062.00

Parcel No. 5 (85,138 hectares)
Petro-Canada     33.34%
Mobil Oil Canada Properties     33.33%
Norsk Hydro Canada Oil & Gas Inc.     33.33%
$10,120,000.00

Parcel No. 6 (20,180 hectares)
Husky Oil Operations Limited     100%
$1,839,600.00

Parcel No. 7 (15,221 hectares)
Husky Oil Operations Limited     70%
Petro-Canada     30%
$16,156,700.00

Parcel No. 9 (32,152 hectares)
Chevron Canada Resources Limited     33.34%
Petro-Canada     33.33%
Mobil Oil Canada Properties     33.33%
$4,120,000.00

Parcel No. 11 (31,691 hectares)
Norsk Hydro Canada Oil & Gas Inc.     33.34%
Petro-Canada     33.33%
Mobil Oil Canada Properties     33.33%
$8,180,000.00

Parcel No. 13 (108,064 hectares)
PanCanadian Petroleum Limited     100%
$1,216,786.79

Subject to Ministerial approval and the bidders satisfying the requirements specified in the Call for Bids, the Board will issue an Exploration Licence for each of the ten parcels in January, 1999. The Licences will be for a term of nine years, with an initial period of five years.

For further information, please contact:

Hal Stanley
Chairman
Tel: (709) 778-1452

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