The Canada-Newfoundland Offshore Petroleum Board (C-NOPB) today announced 8 (eight) new exploration licences (ELs) for the Laurentian Sub-basin. These licences result from negotiated agreements with former federal permit holders to convert the federal permits in the Newfoundland and Labrador portion of the Laurentian Sub-basin into 8 new ELs. The negotiated agreements and the terms and conditions of the licences have been approved by the federal and provincial Ministers of Natural Resources.

The following are some details of the new ELs:

EL 1081

(339,486 hectares)
ConocoPhillips Canada     48%
Murphy Oil Company     52%

EL 1082

(332,346 hectares)
ConocoPhillips Canada     47%
Murphy Oil Company     53%

EL 1083

(309,137 hectares)
ConocoPhillips Canada     59%
Murphy Oil Company     41%

EL 1084

(324,270 hectares)
ConocoPhillips Canada     89%
Murphy Oil Company     11%

EL 1085

(328,178 hectares)
ConocoPhillips Canada     89%
Murphy Oil Company     11%

EL 1086

(334,432 hectares)
ConocoPhillips Canada     89%
Murphy Oil Company     11%

EL 1087

(324,344 hectares)
ConocoPhillips Canada     89%
Murphy Oil Company     11%

EL 1088

(194,800 hectares)
Imperial Resources Ventures     100%

Total 2,486,993 hectares

Each licence is for a maximum of nine years; the Imperial Resources Ventures licence is effective upon execution of the negotiated agreement while the ConocoPhillips Murphy Oil licences are effective July 1, 2004.

Since 1997, the ConocoPhillips Murphy Oil consortium has spent over $23 million in the licence areas, mostly on seismic data. The ConocoPhillips Murphy Oil consortium has agreed to additional expenditure commitments of $18 million across their seven licences. Imperial Resources has committed to $1.5 million work expenditure for its licence.

The authority to negotiate the conversion of these permits to exploration licences is outlined in the Atlantic Accord Implementation Acts.

The Strategic Environmental Assessment (SEA) for the Laurentian Sub-basin for the Laurentian Sub-basin was released in January 2004. The SEA provided a broad overview of the existing environment and noted likely environmental effects. The SEA indicated there is a munitions dumpsite located on the southeastern portion of the area now known as EL 1087. As a result, a term has been placed on that licence requiring additional authorization for activities causing physical disturbance within the area of the dumpsite.

Before any work is permitted in the offshore area- be it drilling, seismic testing or other petroleum-related activity – a more detailed and location-specific environmental assessment must be submitted to the Board for approval.

Uncertified abstracts of these new licences will be available on the C-NOPB website www.cnopb.nfnet.com once they come into effect.

Source:
Dr. Neil DeSilva
Manager, Exploration
(709) 778-1421

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

Media Contact:
Simone Keough APR
Manager, Communications
(709) 778-1418
(709) 687-7429 (cell)

For additional details please see attached backgrounder and overview.