NOTICE OF COMMENCEMENT

of an environmental assessment

Terra Nova Vertical Seismic Profile Program

March 28, 2006 -- The Canada-Newfoundland and Labrador Offshore Petroleum Board will conduct a screening commencing on March 28, 2006 of the project: Terra Nova Vertical Seismic Profile Program.

Petro-Canada is proposing to conduct vertical seismic profile (VSP) surveys in the Terra Nova Field in the Newfoundland and Labrador offshore area. A VSP survey is conducted to correlate the geological data from the well with the geophysical data at the well location. The VSPs will be conducted on an as-needed basis in support of its development drilling program. For each VSP, Petro-Canada is proposing to use a four sleeve-gun array, comprised of 2 x 100 cu. in. and 2 x 150 cu. in, for a total volume of 500 cu. in., and suspended at a constant depth of four to seven metres. Either a zero-offset VSP (fixed distance from the well head) with the source deployed from the rig, or a offset/walkaway VSP (uniform intervals up to 5 km form the wellhead) will be conducted. Each VSP will only be conducted once, and may occur at any time of the year, throughout the life of the Terra Nova Development, and will last from 8 to 36 hours. It is anticipated that the first VSP will be conducted in July 2006.

Under section 5 of the Canadian Environmental Assessment Act, an EA is required for this project because the Canada-Newfoundland and Labrador Offshore Petroleum Board may issue a permit or license under paragraph 138(1)(b) of the Canada-Newfoundland Atlantic Accord Implementation Act.

For further information on this environmental assessment, please contact:
Kim Coady
Environmental Assessment Officer
Canada-Newfoundland and Labrador Offshore Petroleum Board
5th Floor, TD Place
140 Water Street
St. John's    A1C 6H6
Telephone: (709) 778-1431
Fax: (709) 778-1432
Email: ead@cnlopb.nl.ca

and refer to CEAR reference number 06-01-18277