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July 10, 2006

Monday, July 10, 2006

(Halifax, NS) Nova Scotia Business Inc (NSBI), on behalf of the Province of Nova Scotia, confirmed today that Anadarko Petroleum Corporation has reached an agreement to sell the Bear Head LNG terminal project. Located at Bear Head, Nova Scotia, the site has been sold to US Venture Energy, a privately held equity investment firm. Anadarko will retain an option on future capacity through the terminal under the agreement.

“Nova Scotia’s energy picture has improved considerably in the past 10 days,” said Premier Rodney MacDonald. “Two of the province’s most important energy projects, Deep Panuke, and now Bear Head, have been re-ignited. These encouraging developments, and the opportunities associated with them, hold much promise for our talented engineering and industrial workforce.”

US Venture Energy is a global private equity firm dedicated to energy investments with a particular focus on LNG related assets.

 “We view the Bear Head LNG project to be among the most exciting energy opportunities in North America,” said US Venture Energy General Partner Robert Boudreaux. “Bear Head is an exceptionally strong strategic asset for both the province of Nova Scotia and US Venture Energy.”

Nova Scotia Business Inc., on behalf of the province and its community partners, has worked closely with the agreement’s principals to facilitate the transaction and to protect the interests of the community.

Throughout the process, a primary objective was to ensure that the new ownership group had the financial and management capacity to bring the terminal into an operational phase. In addition, project partners worked to ensure that all community benefit commitments would remain in place. NBSI is confident that both objectives will be fully met by US Venture Energy.

The terminal site has been developed substantially and is ready to begin assembly on the first two massive LNG holding tanks, as well as the terminal and jetty. The project has all required provincial and federal regulatory approvals in place.

“The restart of the Bear Head LNG project is very positive for the province,” commented Chris Huskilson, president and CEO of Emera Inc. “Ensuring a strong and stable supply of natural gas to the region is a key building block in creating the energy future that Nova Scotians expect.”

The Bear Head LNG project was initiated in 2002 by Access Northeast Energy of Calgary. It was purchased by Anadarko of Houston in 2004. The 246-acre site boasts a natural breakwater and very deep berths in an ice-free, protected harbour. The terminal will have an initial throughput capacity of one billion cubic feet per day, and has significant expansion capability.

“Bear Head is one of the best natural sites for a liquid natural gas terminal anywhere in the world,” said Stephen Lund. “Community leadership has been a constant throughout this project. Add to it a strong new global ownership group, and a winning formula is in place.”

Nova Scotia Business Inc. is Nova Scotia's private sector-led business development agency. NSBI is the investment attraction arm of the province and helps companies in Nova Scotia meet their growth potential through business advisory, export development, and financial services.

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Media Contacts:

Paul Doucet
Nova Scotia Business Inc
(902) 401-1692
doucetp@gov.ns.ca

For media queries contact:
media@nsbi.ca
902.424.3527