Province Accepts Bids for Sale of NSRL Assets

The Nova Scotia government has accepted two cash bids totalling $5.8 million for the purchase of the remaining assets of Nova Scotia Resources Limited (NSRL). To date, the Crown corporation's assets have been sold for about $400 million, helping to offset provincial debt.

The two successful bidders are Pengrowth Corporation and Shell Canada Limited, Finance Minister Neil LeBlanc said today, May 14.

"We are confident that this combination of bids will provide the greatest value for Nova Scotia taxpayers," said Mr. LeBlanc.

Pengrowth is offering to purchase NSRL's interests in all significant discovery licenses, except one, for $4.5 million and, as an additional consideration, a 10 per cent net profits interest to the province. Shell Canada will purchase NSRL's interest in the remaining license, covering Deep Cohasset, for $1.3 million.

The province will retain interest in the two Cohasset-Panuke production licences, as well as its $17.5-million guarantee to the Canada-Nova Scotia Offshore Petroleum Board to secure the abandonment of the Cohasset-Panuke oilfield.

Mr. LeBlanc said the agreements are now being negotiated and the province expects to close these sales early this summer.

There were six bids in response to the province's most recent call for offers for the purchase of NSRL.