The Canada-Newfoundland Offshore Petroleum Board today announced the results of the 2003 Call for Bids for exploration rights in the Newfoundland offshore area which closed on December 17, 2003. Bids were received on 8 of the fourteen parcels offered. All the successful bid parcels are located in the Orphan Basin. No bids were received on parcels, 1, 2, 8, 9, 13 or 14 ( 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. A new provision in the 2003 Call for Bids provides the option to spend up to 5 percent of the bid amount in the areas of Research and Development and Education and Training in the Province.

The following bids have been accepted:

Parcel 3
(268 190 ha)
ExxonMobil
Imperial Oil
Chevron
25%
25%
50%
$ 2,200,000

Parcel 4
(269 375 ha)
ExxonMobil
Imperial Oil
Chevron
25%
25%
50%
$ 35,520,000

Parcel 5
(251 585 ha)
ExxonMobil
Imperial Oil
Chevron
25%
25%
50%
$ 2,200,000

Parcel 6
(260 935 ha)
ExxonMobil
Imperial Oil
Chevron
25%
25%
50%
$ 181,300,000

Parcel 7 (
270 825 ha)
ExxonMobil
Imperial Oil
Chevron
25%
25%
50%
$ 91,100,000

Parcel 10
(272 840 ha)
ExxonMobil
Imperial Oil
Chevron
25%
25%
50%
$ 106,560,000

Parcel 11
(273 060 ha)
ExxonMobil
Imperial Oil
Chevron
25%
25%
50%
$ 251,600,000

Parcel 12
(258 180 ha)
ExxonMobil
Imperial Oil
Chevron
25%
25%
50%
$ 2,200,000

Total

$ 672,680,000

The Board today also released the final version of the Strategic Environmental Assessment (SEA) for the Northeast Newfoundland Shelf and the Orphan Basin area . All 14 of the parcels offered in the 2003 Call for Bids were included in this SEA.

Subject to the bidders satisfying the requirements specified in the Call for Bids, the Board will issue an Exploration Licence for each of the 8 parcels in January 2004. The Licences will be for a term of nine years, with an initial period of five years.

For further information, please contact:

SOURCE:
Susan Churchill
Legal Counsel
(709) 778-1408

MEDIA REFERENCE:
Simone Keough
Public Information Coordinator
(709) 778-1440
(709) 834-9136 after hours