The Canada-Newfoundland and Labrador Offshore Petroleum Board today announced the results of the 2008 Calls for Bids NL08-1 and NL08-2 (see attached land plats) for exploration rights in the Newfoundland and Labrador Offshore Area. Bidding closed on November 14, 2008 and successful bids were received on all five parcels offered totaling $129,892,000. Three of the successful bid parcels are located in the Central Ridge/Flemish Pass and two are located in the Jeanne d’Arc Basin.

The bids represent the expenditures which the bidders commit to make in exploring the parcels during the initial five-year period of a nine-year term Exploration Licence. If companies discover significant quantities of petroleum resources as a result of the exploration work, they may then seek a Significant Discovery Licence from the C-NLOPB. Any Significant Discovery Licences issued in respect of lands resulting from these Exploration Licences will be subject to rentals which will escalate over time.

The following bids have been accepted:

Call for Bids NL08-1 (Central Ridge/Flemish Pass)

Parcel 1 (138,200 ha)
Husky Oil Operations Limited (40%)
Petro-Canada (40%)
Repsol Exploracion, S.A. (20%)
$18,600,000

Parcel 2 (134, 227 ha)
Husky Oil Operations Limited (67%)
Repsol Exploracion, S.A. (33%)
$1,188,000

Parcel 3 (55,954 ha)
StatoilHydro Canada Ltd. (65%)
Husky Oil Operations Limited (35%)
$18,724,000

Call for Bids NL08-2 (Jeanne d’Arc Basin)

Parcel 1 (19,430 ha)
Petro-Canada (50%)
StatoilHydro Canada Ltd. (50%)
$81,900,000

Parcel 2 (121,348 ha)
Husky Oil Operations Limited (67%)
Repsol Exploracion, S.A. (33%)
$9,480,000

Total:
$129,892,000

Subject to the bidders satisfying the requirements specified in the Call for Bids and Ministerial approval, the Board will issue an Exploration Licence for each of the five parcels in January 2009. The licences will be for a term of nine years, with an initial period of five years.

MEDIA CONTACT:

Sean Kelly APR
Manager, Public Relations
(709) 778-1418
(709) 689-0713 (cell)
skelly@cnlopb.nl.ca