Province Seeking Valuation of Nova Scotia Resources Ltd.

The Nova Scotia government wants to know how much Nova Scotia Resources Ltd. (NSRL) is worth to the province.

The province has asked the Crown corporation to seek proposals to conduct a valuation. Finance Minister Neil LeBlanc wants to know the corporation's value under various options so an informed decision can be made about its future.

"We want to maximize the value of NSRL to the benefit of Nova Scotians," Mr. LeBlanc said. "That may mean keeping it as it is, selling all or part of it, or some other option. But first we need good information on which to base a decision."

The Crown corporation owns 8.4 per cent of the Sable Offshore Energy Project, which began producing natural gas on Dec. 31. The corporation can expect significant revenue over the 25-year life of the project. However, Nova Scotia Resources Ltd. has a debt of $714 million.

"NSRL has a high debt load, but it also has some significant revenues which are just now starting to come in," Mr. LeBlanc said. "This valuation exercise does not commit us to keeping or selling NSRL. We simply need to know the value of this asset under various options before we can make an informed decision."

A request for proposals to conduct the valuation will soon be issued by Nova Scotia Resources Ltd. Once underway, it should be completed in about three months.