The Canada-Newfoundland and Labrador Offshore Petroleum Board today announces details of the 2006 land sales in the Newfoundland and Labrador Offshore Area. This year, there will be three separate Calls for Bids. Call for Bids NL06-1 (Jeanne d’Arc Basin) will consist of three parcels; Call for Bids NL06-2 (Sydney Basin) will consist of three parcels and Call for Bids NL06-3 (Western Newfoundland and Labrador Offshore Region) will consist of five parcels. These parcels comprise a total of 1,712,758 hectares.

Interested parties will have until 4:00 p.m. on November 15, 2006 to submit sealed bids for Call for Bids NL06-1 (Jeanne d’Arc Basin) and Call for Bids NL06-3 (Western Newfoundland and Labrador Offshore Region).

The Board will conduct a strategic environmental assessment (SEA) of the Sydney Basin containing the three parcels offered in Call for Bids NL06-2 (Sydney Basin). The Board’s advisory agencies in government, fisheries interests, and public stakeholders will be consulted during this process. A draft of the SEA report will be published on the Board’s website for public comment when it becomes available. The Board will consider any recommendations made in the SEA report and, where necessary, may amend that Call to ensure concerns are addressed. Interested parties will have until 4:00 p.m. on November 30, 2006 to submit sealed bids for the Sydney Basin Call for Bids.

The sole criterion for selecting winning bids will be the total amount of money the bidder commits to spend on exploration of the respective parcel during the first 5 years (Period I). The minimum bid for all parcels is one million dollars for parcels in the Jeanne d’Arc Basin and Sydney Basin and $250,000 for parcels in the Western Newfoundland and Labrador Offshore Region.

All three Calls for Bids contain provisions for rentals during the term of an exploration licence and during the term of any resulting significant discovery licence. Each Call for Bids contains a sample exploration licence and a sample significant discovery licence.

Subject to Ministerial approval, successful bidders will be issued an exploration licence for a term of 9 years; however, during Period I, a well must be spudded to validate the licence for the full 9-year term. Period I may be extended from five years to six years by posting an additional deposit of one million dollars as security for drilling a well on a parcel in the Jeanne d’Arc Basin or Sydney Basin and by posting an additional $250,000 as security for drilling a well on a parcel in the Western Newfoundland and Labrador Offshore Region.

For a complete copy of the text of any of these three Calls for Bids, visit the C-NLOPB website at www.cnlopb.nl.ca.

Sources:
Susan E. Gover
Legal Counsel
(709) 778-1408

Media Inquiries:
Edsel Bonnell
Public Relations
(709) 778-1418