20 November 2010

Offshore board announces results of bid call

From the Canada-Newfoundland and Labrador Offshore Petroleum Board (19 Nov 10):

“The Canada-Newfoundland and Labrador Offshore Petroleum Board
(C-NLOPB) announced today the results of the 2010 Call for Bids NL10-01 (Jeanne d’Arc Basin )for exploration rights in the Newfoundland and Labrador Offshore Area. Bidding closed on November 17, 2010 and successful bids were received on both parcels offered totalling $16,300,000.

The bids represent the expenditures which the bidders commit to make in exploring the respective parcels 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 NL10-01 (Jeanne D’Arc Basin)

Parcel 1 (139,617 ha)
Husky Oil Operations Limited (67%)
Repsol E & P Canada Ltd. (33%)

Parcel 2 (29,783 ha)
Husky Oil Operations Limited (50%)
Statoil Canada Ltd. (50%)

Subject to the bidders satisfying the requirements specified in the Call for Bids and Ministerial approval, the Board will issue an exploration licence for both parcels in January 2011. The licences will be for a term of nine years, with an initial period of five years.”

- srbp -