NSRL and BP Amoco Sign Gas Marketing Deal

Nova Scotia Resources Ltd. (NSRL) and BP Amoco announced today the signing of an agreement for BP Amoco to market the provincial Crown corporation's 45-million cubic feet per day share of natural gas production flowing from the Sable Offshore Energy Project (SOEP). The agreement is effective immediately with first production from the Sable project anticipated for Nov. 1, 1999.

"Our North American natural gas position and marketing capabilities will maximize the value of NSRL's gas interest in the Sable project," said Brian E. Frank, vice-president (Canada) of Amoco Energy Trading Company (AETC), BP Amoco's North American natural gas marketing arm. "We are truly excited to have this opportunity to partner with NSRL, and look forward to integrating this new supply basin into the North American energy market."

Under the agreement, AETC will focus on marketing gas in New England and the northeastern United States and will assist NSRL to market gas in the Maritimes. Also, AETC will pursue additional optimization opportunities throughout BP Amoco's substantial supply, transportation, storage and customer portfolios in North America.

Nova Scotia Resources Ltd. currently holds an 8.4 per cent interest in the Sable project, which translates to about 45-million cubic feet per day of marketable natural gas. It is estimated that the Sable Offshore Energy Project has 3.5-trillion cubic feet of natural gas to recover over the life of the project. The natural gas produced from the Sable project will be transported to markets through the Maritimes and Northeast Pipeline company.

"NSRL and Nova Scotia will reap the benefits of having access to the marketing experience of BP Amoco," said Jim MacDonald, general manager of Nova Scotia Resources Ltd. "It is a pleasure to see another major oil and gas company becoming involved with the industry in Nova Scotia."

Amoco Energy Trading Company is a North American energy marketing and trading entity with natural gas sales of 5.5-billion cubic feet per day. The company has offices in Calgary, Houston, Boston, Chicago, and Los Angeles. BP Amoco is North America's largest producer and private reserves holder of natural gas, producing 3.5-billion cubic feet of natural gas per day.

BP Amoco is an international company involved in the exploration and production of crude oil and natural gas; refining, marketing, supply and transportation of hydrocarbons; and manufacturing and marketing of petrochemicals and solar power generation.

Nova Scotia Resources Ltd. is the provincial Crown corporation responsible for managing Nova Scotia's participation in offshore oil and gas development. In addition to its 8.4 per cent share in the Sable project, the company has participated in the Cohasset/Panuke oilfield and exploration activity resulting in other significant discoveries.