The Canada-Newfoundland and Labrador Offshore Petroleum Board today announced the results of the 2008 Calls for Bids NL08-3 and NL08-4 for exploration rights in the Newfoundland and Labrador Offshore Area. Bidding closed on November 28, 2008 and successful bids were received on 2 of the 5 parcels offered totaling $2,400,000. One of the successful bid parcels is located in the Sydney Basin and one is located in Western Newfoundland and Labrador Offshore Region.

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 NL08-3 (Sydney Basin)

Parcel 1 (271,891 ha)
Husky Oil Operations Limited (100%)
$1,800,000

Parcel 2 (256,352 ha)
None

Parcel 3 (243,623 ha)
None

Call for Bids NL08-4 (Western Newfoundland and Labrador Offshore Region)

Parcel 1 (211,985 ha)
PDI Production, Inc. (100%)
$600,000

Parcel 2 (274,600 ha)
None

Total:
$2,400,000

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 2 parcels in January 2009. The licences will be for a term of nine years, with an initial period of 5 years.

MEDIA CONTACT:

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