Imperial Acquires Exploration Parcels Offshore Newfoundland

Imperial Oil Resources was successful, along with co-venturers ExxonMobil Canada and Chevron Canada Resources in acquiring exploration rights for eight deepwater parcels offshore Newfoundland. The Canada - Newfoundland Offshore Petroleum Board announced that it had awarded a number of exploration licenses for offshore areas in a region known as the Orphan Basin.

Imperial and its co-venturers were awarded exploration licenses for these parcels after proposing exploration spending of $673 million (Cdn.). Imperial's 25 percent share would be $168 million. License terms are such that Imperial's minimum commitment is 25 percent of its share, or $42 million. Other owners include ExxonMobil Canada at 25 percent and Chevron Canada at 50 percent.

"Imperial is pleased we were successful in acquiring this offshore acreage," says K.C. Williams, president and chief executive officer, Imperial Oil Resources. "These parcels are a significant addition to Imperial's unexplored acreage position. However, this frontier basin is a high-risk and high-cost area."

Imperial has extensive exploration interests off Canada's East Coast. In addition to its nine-percent interest in the Sable energy project offshore Nova Scotia, Imperial holds exploration rights in 11 additional offshore parcels in the vicinity of the Sable project -- six on the shallow-water shelf and five in deep water.