The Canada-Newfoundland and Labrador Offshore Petroleum Board announced today the results of the 2009 Calls for Bids NL09-01 (Jeanne D’Arc Basin) NL09-02 (Laurentian Subbasin) and NL09-03 (Western Newfoundland and Labrador Offshore Region) for exploration rights in the Newfoundland and Labrador Offshore Area. Bidding closed on November 19, 2009 and successful bids were received on all four parcels offered totaling $47,000,211. One of the successful bid parcels is located in the Jeanne d’Arc Basin, two of the successful bid parcels are located in Laurentian Subbasin and the remaining successful bid parcel is located in the Western Newfoundland and Labrador Offshore Region.

The bids represent the expenditures which the bidders commit to make in exploring the respective parcel during Period I. 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 NL09-01 (Jeanne D’Arc Basin)

Parcel 1 (9558 ha)
Husky Oil Operations Limited (72.5%)
Suncor Energy Inc. (27.5%)
$36,800,000

Call for Bids NL09-02 (Laurentian Subbasin)

Parcel 1 (290,070 ha)
ConocoPhillips Canada Resources Corp. (55%)
BHP Billiton Petroleum (Laurentian) Corporation (45%)
$8,000,210

Parcel 2 (73,931 ha)
ConocoPhillips Canada Resources Corp. (64.0091%)
BHP Billiton Petroleum (Laurentian) Corporation (35.9909%)
$1,000,001

Call for Bids NL09-03 (Western Newfoundland and Labrador Offshore Region)

Parcel 1 (140,210 ha)
Ptarmigan Energy Incorporated
$1,200,000

Total:
$47,000,211

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 four parcels in January 2010. The licences will be for a term of nine years, with an initial period of five years.

The Board is pleased with the results of the bidding process. This is the first time that the Board has had a Call for Bids in the Laurentian Subbasin since the Board was established in 1986.

MEDIA CONTACT:

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