RE: CLOSING DATE AND CHANGES TO TERMS AND CONDITIONS

The Board has now concluded the Western Newfoundland and Labrador Offshore Area Strategic Environmental Assessment (SEA) Update containing the four parcels offered in Call for Bids NL13-03 (Area “B” – Western Newfoundland and Labrador Offshore Region).

When the Call for Bids was announced on May 16, 2013, the Board stated that the closing date would be 120 days after the completion of the relevant SEA reports. Governments recently approved a Fundamental Decision which allows for the closing date to be “no earlier than 120 days after the completion of the relevant SEA report”. This administrative change allows additional time for geoscientific assessment and aligns with the traditional annual date for licence issuance on January 15, 2015.

The Board has decided that the closing date for Call for Bids NL13-03 will be November 12, 2014 at 4:00 p.m. NST.

In accordance with the provisions of the Accord Acts for amending terms and conditions of exploration licences, the Board has also amended the terms and conditions of the sample Exploration Licence found in Schedule IV of Call for Bids NL13-03 to be consistent with those announced on December 19, 2013 in the new Scheduled Land Tenure Regime:

• Period I shall be for a term of six years.
• The minimum bid will be increased to $10 million.
• Allowable expenditures may be claimed for those permitted expenses incurred from the date of the initial announcement of the call for nominations up to and including the effective date of the licence. These new credits would be in addition to those allowable expenditures available for credit during the term of the licence.
• The Interest Owner may, at its option, extend Period I for additional years to a maximum total of three (3) extensions by posting a drilling deposit with the Board before the end of Period I or any additional year extension of Period I in the following amounts:

Period I A – 1 year extension – $5 million
Period I B – 1 year extension – $10 million
Period I C – 1 year extension – $15 million

If a drilling deposit is posted, it will be refunded in full if the well commitment is met during the respective period of extension. Otherwise, the drilling deposit will be forfeited upon termination of that period extension.

Any petroleum-based activity proposed for the Newfoundland and Labrador Offshore Area will be the subject of a project-specific environmental assessment, which would form part of the basis for a
C-NLOPB authorization and set out any mitigations or restrictions to be applied before a proposed activity can proceed. Safety and environmental protection are paramount considerations in all
C-NLOPB authorizations.

Media Contact:
Sean Kelly M.A., APR, FCPRS
Manager of Public Relations
(709) 778-1418
(709) 689-0713 (cell)
skelly@cnlopb.nl.ca