RE: CLOSING DATE AND CHANGES TO TERMS AND CONDITIONS

The Board has now concluded the Eastern Newfoundland Strategic Environmental Assessment containing the parcels offered in Call for Bids NL13-01 (Area “C” – Flemish Pass), Call for Bids NL13-02 (Area “C” – Carson Basin) and Call for Bids NL14-01 (Jeanne d’Arc Region).

As a result, the closing date for Calls for Bids NL13-01, NL13-02 and NL14-01 will now be December 12, 2014 at 11:30 a.m. NST.

As noted in our Notice to Potential Bidders dated May 20, 2014, the Board has also amended the terms and conditions of the Sample Exploration Licence found in Schedule IV of Calls for Bids NL13-01 and NL13-02 to be consistent with those announced on December 19, 2013 in the new Scheduled Land Tenure Regime:

• 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 for that scheduled round 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.

Media Contact:
Lesley Rideout
Public Relations Coordinator
(709) 778-4224
(709) 725-2900 (cell)
lrideout@cnlopb.nl.ca