Factors which influenced the Board’s decision included the recent decision concerning the boundary of the Newfoundland offshore area, and changes within the offshore industry itself in Newfoundland and Labrador. The Jeanne d’Arc Basin is now relatively mature in terms of exploration, and the industry focus is shifting towards deeper waters and other basins at the same time as major interest holders — and their exploration portfolios – are consolidating.

In order to allow time for these factors to stabilize within the offshore industry, the Board has decided to defer its land sale for 2002.

Meanwhile, there is a continuing commitment of $500 million in exploration expenditures from previous C-NOPB land sales, and this activity will proceed as authorized. It is expected that several exploration wells will be drilled in the Newfoundland and Labrador offshore area this year.

MEDIA REFERENCE:
Edsel Bonnell
Public Information Coordinator
(709) 778-1440