Increased stakes in Canadian oil assets

(April 22, 2005) Hydro has increased ownership stakes in oil resources off Nova Scotia and the Grand Banks.

With the acquisition of 50 percent of exploration license EL 2404 from Kerr McGee on 14 April, Hydro is 100 percent owner and operator of the license.

"This is consistent with the business growth strategies that Hydro set out some time ago and our objective towards becoming an operator offshore Atlantic Canada," says Torgeir Opdahl, president of Oil & Energy's Canada business unit.

Also executed was an agreement with BP whereby Hydro acquired 50 percent of Nova Scotia exploration licence EL 2403 – Cabot, and increased Hydro’s interest in the significant Newfoundland discovery license SDL 1040 – Torbay, to 90 percent.

"We believe the acreage position we have, as well as our ongoing work, provides a positive strategic position for Hydro," says Opdahl. "Exploration is a high risk-high reward business. There is much work to do in order to better understand the geology of the region and prudently advance an exploration drilling program."