The Canada-Newfoundland and Labrador Offshore Petroleum Board today announced the results of the 2006 Call for Bids NL 06-1 and NL 06-3 for exploration rights in the Newfoundland and Labrador Offshore Area, which closed on November 15, 2006 (see attached land plat for NL06-1 andNL06-3). Bids were received on six of the eight parcels offered. Three of the successful bid parcels are located in the Jeanne d’Arc Basin (parcels 1, 2 and 3) and the remaining three are located in the Western Newfoundland and Labrador Offshore Region (parcels 1, 3 and 4).

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. Any Significant Discovery Licences issued in respect of lands resulting from these exploration licences will be subject to rentals which will escalate the longer the lands are held without any further activity (work expenditures can be credited against rentals). This is the first time that terms and conditions have been prescribed for Significant Discovery Licences to encourage development.

The following bids have been accepted:

Jeanne d’Arc Basin

Parcel 1 (24,838 ha)
Husky Oil Operations Limited*     100%
$15,500,000

Parcel 2 (30,572 ha)
Norsk Hydro Canada Oil & Gas Inc.*     50%
Husky Oil Operations Limited     50%
$5,500,000

Parcel 3 (21,009 ha)
Norsk Hydro Canada Oil & Gas Inc.*     50%
Husky Oil Operations Limited     50%
$10,400,000

Total
$31,400,000

Western Newfoundland and Labrador Offshore Region

Parcel 1
(124,320 ha)
B. G. Capital Ltd.*
100%
$406,000

Parcel 3
(216,164 ha)
NWest Energy Inc.*
100%
$275,004

Parcel 4

(187,744 ha)
NWest Energy Inc.*
100%
$275,004

* refers to representative

Total
$956,008

Subject to Ministerial approval and the six bidders satisfying the requirements specified in the Call for Bids, the Board will issue an Exploration Licence for each of the six parcels in January 2007. The Licences will be for a term of nine years, with an initial period of five years.

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

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