The Canada-Newfoundland Offshore Petroleum Board announced today that it has imposed further oil production rate restrictions at Hibernia. Hal Stanley, Board Chairman and Chief Executive Officer said that the Hibernia Management and Development Company Limited (HMDC) has been notified that, effective January 1, 1999, oil production is to be limited to 10 800 m³/d (68,000 barrels per day) until such time the surplus gas produced during oil production can be conserved by re-injecting it into the Hibernia reservoir. The Board will review the rate restriction each month until the company can demonstrate its ability to re-inject gas on a sustained basis.

During December, the Hibernia field operated under a previously imposed rate restriction that allowed oil production to average about 15 474 m³/d (97,330 barrels per day). Mr. Stanley said he hoped the need for these measures would be temporary, as HMDC is scheduled to bring an additional gas injection well into service during January 1999 and has revised its drilling program to drill further gas injection wells earlier than was previously planned.

For general information regarding this news release, please contact:

Hal Stanley
Chairman & Chief Executive Officer
Telephone: (709) 778-1456