Results of Land Sale Great News for Provincial Oil & Gas Industry

Posted in Releases on November 16, 2015

St. John’s, NL (November 12, 2015) This afternoon, the Canada-Newfoundland and Labrador Offshore Petroleum Board (C-NLOPB) announced the results of the first Call for Bids in the Eastern Newfoundland Region under the Scheduled Land Tenure System in the Canada-Newfoundland and Labrador Offshore Area.

The total value of the bids was $1,204,953,713 in work commitments. Overall, 13 bids were submitted, 9 companies participated and 7 parcels were awarded in the NL15-01EN licencing round.

“This is the largest value of bids the province has ever received in a land sale and it demonstrates that the Newfoundland and Labrador deepwater region is a desirable investment area for global E&P companies - even in light of current low oil prices,” said Robert Cadigan, President and CEO of the Newfoundland and Labrador Oil & Gas Industries Association (Noia). “It is good news for the people of Newfoundland and Labrador and for the continued growth of the oil & gas industry in the province.”

In October 2015, the province released a resource assessment study for the 11 blocks of land that made up the bid round that closed today. This marked the first time in the history of the province’s offshore that the people of Newfoundland and Labrador and global oil & gas companies had a public report outlining the oil & gas resource potential for the area prior to bids closing.

“The positive outcome of today's bids clearly demonstrates the additional value that this type of data and resource evaluation provides, “said Mr. Cadigan. “This is the first scheduled license round under the new scheduled land tenure system announced by the Board in December 2013, and for which Noia lobbied vigorously for.  A scheduled land sale system positions Newfoundland and Labrador to compete for global exploration capital against other jurisdictions that have regular, predictable land sale rounds.”

Further information and a list of bidders is available on the C-NLOPB’s website.

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For more information, contact:

Jennifer Collingwood, Senior Director of Communications, Noia
Tel: 709-758-6617 | Cell: 709-691-2208 | jcollingwood@noia.ca

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