September, 2002September, 2002

An Overview of Atlantic CanadaAn Overview of Atlantic CanadaExploration and the EnvironmentalExploration and the EnvironmentalLegislative Process, Offshore NovaLegislative Process, Offshore NovaScotia, CanadaScotia, Canada

John HoggJohn HoggVice President, Atlantic CanadaVice President, Atlantic Canada

Offshore New Ventures ExplorationOffshore New Ventures Exploration

Facts about EnCana CorporationFacts about EnCana Corporation!! High quality assets � Opportunity Rich PortfolioHigh quality assets � Opportunity Rich Portfolio

!! Strong North American natural gas strategyStrong North American natural gas strategy

!! Superior oil growth; domestic and internationalSuperior oil growth; domestic and international

!! Balance sheet positioned for growthBalance sheet positioned for growth

!! 590,000 BOE daily production (2002F, after royalties);590,000 BOE daily production (2002F, after royalties);64% gas64% gas

!! 2.3 billion BOE proved reserves (year-end 2001,2.3 billion BOE proved reserves (year-end 2001,after royalties); 51% gasafter royalties); 51% gas

!! 90% of reserves and production in North America90% of reserves and production in North America36 million acres net undeveloped land36 million acres net undeveloped land

!! Approximately US$20 billion Value (as of July 24, 2002)Approximately US$20 billion Value (as of July 24, 2002)

Division Breakdown

2002 EnCana Capital Budget2002 EnCana Capital BudgetUS$3.2 Billion Gross*US$3.2 Billion Gross*

Onshore North AmericaBreakdown

SAGD6%

Syncrude9%

Natural Gas63%

Other Oil22%

Offshore & New Ventures Exploration

14%

Offshore &International Development

12%

Onshore North America69%

Marketing & Midstream5%

* Prior to planned net dispositions of US$950 million

Halifax

A World Class International IndependentA World Class International Independent

Houston

Calgary

Quito

London

DubaiBahrain/QatarBahrain/Qatar

YemenYemen

AustraliaAustralia

U.K. North SeaU.K. North Sea

Atlantic CanadaAtlantic Canada

EcuadorEcuador

U.S. Gulf of MexicoU.S. Gulf of Mexico

Offices

International ProjectsInternational Projects

Legend

Rio de Janeiro

Sana�a

DohaN�Djamena

ChadChad

GhanaGhana

Alaska/Mackenzie DeltaAlaska/Mackenzie Delta

BrazilBrazil

Western Canada Western Canada

Atlantic CanadaAtlantic Canada

U.K.U.K.

Gulf of MexicoGulf of Mexico

EcuadorEcuador

U.S. RockiesU.S. Rockies

Six Key Growth PlatformsSix Key Growth Platforms

Alaska/MackenzieDelta

Gulf of Mexico

North America Offshore BasinsNorth America Offshore Basins

Scotian Shelf

US EasternSeaboard

Newfoundland

North of 60°North of 60°

SaskatchewanSaskatchewan

Grand BanksGrand Banksand Scotian Shelfand Scotian Shelf

Other FrontierOther Frontier

BritishBritishColumbiaColumbia 505050 AlbertaAlberta

270270270

636363

175175175

(includes other regions offshore East Coast & West Coast)

99Remaining

Produced

Source: National Energy Board / Canadian Association of Petroleum Producers Source: National Energy Board / Canadian Association of Petroleum Producers

Canada: How Much Gas is Out There?Canada: How Much Gas is Out There?

Item 1

Item 1

898989

US Atlantic MarginUS Atlantic Margin!! Area Area > > 250,000 km250,000 km22

!! ReservoirReservoir

�� Jurassic CarbonatesJurassic Carbonates

�� JuraJura-Cretaceous Sands-Cretaceous Sands

�� Tertiary SandstonesTertiary Sandstones

!! SourceSource

�� Jurassic\CretaceousJurassic\CretaceousMarine Marine ShalesShales

!! TrapsTraps

�� ListiricListiric Normal Fault Normal FaultPlaysPlays

�� Stratigraphic Pinch-outsStratigraphic Pinch-outs

�� Reef MarginsReef Margins

!! Potential (Potential (USGSUSGS))

�� 16 - 45 16 - 45 TcfTcf

�� 1 - 4 Billion Barrels1 - 4 Billion Barrels

HalifaxHalifax

St. John�sSt. John�s

Scotian ShelfScotian Shelf

GrandGrandBanksBanks

Sable OffshoreSable OffshoreEnergy ProjectEnergy Project

150 km150 km

St. JohnSt. John

HiberniaHiberniaCharlottetownCharlottetown

TerraTerraNovaNova

DeepDeepPanukePanuke

Atlantic CanadaAtlantic Canada

BangorBangor

HiberniaHiberniaProductionProductionPlatformPlatform

Terra Nova Floating Production SystemTerra Nova Floating Production System

HalifaxHalifax

Atlantic Canada Gas TransportationAtlantic Canada Gas Transportation

AnticostiAnticosti Basin Basin

MagdalenMagdalenBasinBasin

Scotia

n Bas

in

EnCana�sDeep Panuke400 MMcf/d � 2005

St. John�sSt. John�s

SOEI ~ 500MMcf/d

BostonBoston

Sable Offshore Energy PlatformsSable Offshore Energy Platforms

Sable Thebaud Central FacilitySable Thebaud Central Facility

Deep Panuke Facilities DesignDeep Panuke Facilities Design

Atlantic Canada Mesozoic SubbasinsAtlantic Canada Mesozoic Subbasins60°W65°W70°W

New Brunswick P.E.I.

Newfoundland

GrandGrandBanksBanks

Laurentian Channel

Laurentian Channel

2000

km

45°N

200m200m

Nova Scotia

Scotian ShelfScotian Shelf

2000m2000m

2000m2000m

Quebec

200m200m

200m200m

45°W50°W55°W

45°N

50°N

HalifaxHalifax

St. John�sSt. John�s

Atlantic CanadaAtlantic CanadaRegional Land OverviewRegional Land Overview

45°N

50°N

P.E.I.P.E.I.

NewfoundlandNewfoundland

GrandBanks

120 Miles

Nova ScotiaNova Scotia

Scotian Shelf

2000m

200m

200m

NewNewBrunswickBrunswick

60°W65°W 55°W 50°W

200m

2000m

Laurentian Channel

45°W

EnCana Corporation Acreage

Scotian Shelf Scotian Shelf SubbasinsSubbasinsSydney

LaHave

New BrunswickP.E.I.

200m200m

2000m2000m

60 Miles60 Miles

Scotian ShelfScotian Shelf

HalifaxHalifaxFundy

45° N45° N

Abenaki

GeorgesBank

Shelbourne

Banquereau

OrpheusGraben

Laurentian

Scotian Salt Province

60°W60°W65°W65°W 55°W55°W

Nova Scotia

SOEISOEI

Regulation of Canada East Coast WatersRegulation of Canada East Coast Waters

!! The Government of Canada and the AtlanticThe Government of Canada and the AtlanticProvinces agreed to jointly administer theProvinces agreed to jointly administer theoffshore by use of independent offshore boardsoffshore by use of independent offshore boards

!! Two Boards: Canada-Nova Scotia and Canada-Two Boards: Canada-Nova Scotia and Canada-Newfoundland Offshore Petroleum BoardsNewfoundland Offshore Petroleum Boards

!! Boards consist of two federal, two provincial andBoards consist of two federal, two provincial andone joint membersone joint members

!! Each Board Staff Administers: HSE, ResourceEach Board Staff Administers: HSE, ResourceRights, Local Benefits, and OperationsRights, Local Benefits, and OperationsManagementManagement

Canada Nova Scotia Offshore Petroleum BoardCanada Nova Scotia Offshore Petroleum Board!! Mission StatementMission Statement

!! To regulate petroleum activities offshore Nova Scotia in an efficient, fair andTo regulate petroleum activities offshore Nova Scotia in an efficient, fair andcompetent manner.competent manner.

!! MandateMandate

!! The Canada-Nova Scotia Offshore Petroleum Board is the independent jointThe Canada-Nova Scotia Offshore Petroleum Board is the independent jointagency of the Governments of Canada and Nova Scotia established pursuant toagency of the Governments of Canada and Nova Scotia established pursuant tothe federal Canada-Nova Scotia Offshore Petroleum Resources Accordthe federal Canada-Nova Scotia Offshore Petroleum Resources AccordImplementation Act and the provincial Canada-Nova Scotia Offshore PetroleumImplementation Act and the provincial Canada-Nova Scotia Offshore PetroleumResources Accord Implementation (Nova Scotia) Act. It is responsible forResources Accord Implementation (Nova Scotia) Act. It is responsible forregulation of petroleum affairs and safe practices offshore Nova Scotia.regulation of petroleum affairs and safe practices offshore Nova Scotia.

!! The Board's principal responsibilities includeThe Board's principal responsibilities include

!! Ensuring the safe conduct of offshore operationsEnsuring the safe conduct of offshore operations

!! Protection of the environment during offshore petroleum activitiesProtection of the environment during offshore petroleum activities

!! Management of offshore oil and gas resourcesManagement of offshore oil and gas resources

!! Review of industrial benefits and employment opportunitiesReview of industrial benefits and employment opportunities

!! Issuance of licenses for offshore exploration and developmentIssuance of licenses for offshore exploration and development

!! Resource evaluation, data collection and distributionResource evaluation, data collection and distribution

CNSOPB Land Issuance & Program ProceduresCNSOPB Land Issuance & Program ProceduresOverviewOverview

Nomination of Land

CNSOPB Strategic EA

Call for Bids

Exploration License

Seismic Program

Geophysical Program

Geotechnical Program

Drilling Program

Environmental Procedures for Environmental Procedures for EL�sEL�sStandard Field Program (Common)Standard Field Program (Common)

EnvironmentalAssessment (EA)

Oil SpillResponse Plan

(OSRP)

AdditionalProgram Specific

Requirements

Program�s Approval

Reporting

OperationalProcedures

Consultation ProcessPL

AN

NIN

GR

EPT.

OPS

Environmental ProceduresEnvironmental ProceduresSeismic Program (Specific Process)Seismic Program (Specific Process)

Environmental AssessmentIdentify critical time/areas forfishing/mammals/spawning

OSRP

Program�s Approval

FLO Report

Fisheries Liaison Observer (FLO)Ramp-up of airguns

Consultation�FEAC (Fisheries EnvironmentalAdvisory Committee) Meeting

�Direct information to FisheriesRepresentatives

�Consultation through Canada-Nova Scotia Offshore PetroleumBoard (CNSOPB) and theFederal Departments ofEnvironment Canada and theDepartment of Fisheries andOceans (DFO)

�Notices to Mariners

�Fisheries Compensation

PLA

NN

ING

REP

T.O

PS

Environmental ProceduresEnvironmental ProceduresExploration Drilling Program, Pre-Drill (Specific Process)Exploration Drilling Program, Pre-Drill (Specific Process)

EnvironmentalAssessment

OSRP

Program�s Approval

Consultation

�FEAC (Fisheries EnvironmentalAdvisory Committee) meeting

�direct info to fisheries reps

�consultation through CNSOPB,Environment Canada and DFO

PLA

NN

ING

BaselineBenthic

Data

DrillingChemicalScreening

Rig�sMetoceanEquipment

MetoceanData for

CertifyingAuthority

Environmental ProceduresEnvironmental ProceduresExploration Drilling, While Drilling, (Specific Process)Exploration Drilling, While Drilling, (Specific Process)

PhysicalEnvironmental

MonitoringProgram (meteo,waves, currents)

Consultation

� Notices toMariners

� FisheriesCompensation

REP

T.O

PER

ATI

ON

S

OWTG(oil on cuttings,

bilge/ballast/deckdrainage water,

sanitary/foodwaste�)

EnvironmentalMonitoring

Program (EMP)(bird monitoring,benthic survey,tainting study�)

Metocean End ofWell Report

Env. ComplianceMonitoring Data

ECMRpt

FLOReport

FLO(optional)

Environmental ProceduresEnvironmental ProceduresEnvironmental Assessment Process 2003 ModificationsEnvironmental Assessment Process 2003 Modifications

!! Existing CNSOPB Process (Timelines)Existing CNSOPB Process (Timelines)!! 30-day review by CNSOPB, DFO, Environment Canada30-day review by CNSOPB, DFO, Environment Canada

!! NS Seismic Class Screening EA (1998, LGL document)NS Seismic Class Screening EA (1998, LGL document)

!! NS Drilling Generic Assessment (2000, LGL document)NS Drilling Generic Assessment (2000, LGL document)

!! New CEAA (Canadian Environmental AssessmentNew CEAA (Canadian Environmental AssessmentAct) Process TimelinesAct) Process Timelines

!! Effective Q1/03 (earliest)Effective Q1/03 (earliest)

!! Screening Study: Screening Study: wellsitewellsite surveys, seismic surveys, and surveys, seismic surveys, andexploration drilling in area previously assessed under CEAAexploration drilling in area previously assessed under CEAA

!! 6-month review6-month review

!! Comprehensive Study: exploration drilling in new areaComprehensive Study: exploration drilling in new area

!! 12-month review12-month review

Websites for Additional InformationWebsites for Additional Information!! Canada Nova Scotia Offshore Petroleum BoardCanada Nova Scotia Offshore Petroleum Board

�� www.cnsopb.ns.cawww.cnsopb.ns.ca

!! Canada Newfoundland Offshore Petroleum BoardCanada Newfoundland Offshore Petroleum Board

�� www.cnsopb.nfnet.com/www.cnsopb.nfnet.com/

!! Terra Nova ProjectTerra Nova Project

�� http://www.terranovaproject.com/http://www.terranovaproject.com/

!! HiberniaHibernia

�� www.hibernia.ca/www.hibernia.ca/

!! Sable Offshore Energy Inc.Sable Offshore Energy Inc.

�� www.soep.comwww.soep.com