WORKING TOGETHER TO DEFINE THE OPPORTUNITY: OFFSHORE AND LABRADOR NALCOR’S ROLE IN OUR OFFSHORE

2 Size Comparison

MPA Goal: 10% of area inside 200 nm 100,000 sq km

NL Offshore Area 1,800,000 sq km

Sedimentary Basins 1,000,000 sq km

Areas with License Rounds/Parcels 170,000 sq km

Areas with Production Licenses 637 sq km

Single New field Production Area 40 sq km

Impact of Single Field on Sea Bed 5 sq km Size Comparison

MPA Goal: 10% of area inside 200 nm 100,000 sq km

NL Offshore Area 1,800,000 sq km

Sedimentary Basins 1,000,000 sq km

Areas with License Rounds/Parcels 170,000 sq km

Areas with Production Licenses 637 sq km

Single New field Production Area 40 sq km

Impact of Single Field on Sea Bed 5 sq km Size Comparison

MPA Goal: 10% of area inside 200 nm 100,000 sq km

NL Offshore Area 1,800,000 sq km

Sedimentary Basins 1,000,000 sq km

Areas with License Rounds/Parcels 170,000 sq km

Areas with Production Licenses 637 sq km

Single New field Production Area 40 sq km

Impact of Single Field on Sea Bed 5 sq km Size Comparison

MPA Goal: 10% of area inside 200 nm 100,000 sq km

NL Offshore Area 1,800,000 sq km

Sedimentary Basins 1,000,000 sq km

Areas with License Rounds/Parcels 170,000 sq km

Areas with Production Licenses 637 sq km

Single New field Production Area 40 sq km

Impact of Single Field on Sea Bed 5 sq km Size Comparison

MPA Goal: 10% of area inside 200 nm 100,000 sq km

NL Offshore Area 1,800,000 sq km

Sedimentary Basins 1,000,000 sq km

Areas with License Rounds/Parcels 170,000 sq km

Areas with Production Licenses 637 sq km

Single New field Production Area 40 sq km

Impact of Single Field on Sea Bed 5 sq km Size Comparison

MPA Goal: 10% of area inside 200 nm 100,000 sq km

NL Offshore Area 1,800,000 sq km

Sedimentary Basins 1,000,000 sq km

Areas with License Rounds/Parcels 170,000 sq km

Areas with Production Licenses 637 sq km

Single New field Production Area 40 sq km

Impact of Single Field on Sea Bed 5 sq km Size Comparison

MPA Goal: 10% of area inside 200 nm 100,000 sq km

NL Offshore Area 1,800,000 sq km

Sedimentary Basins 1,000,000 sq km

Areas with License Rounds/Parcels 170,000 sq km

Areas with Production Licenses 637 sq km

Single New field Production Area 40 sq km

Impact of Single Field on Sea Bed 5 sq km Size Comparison

MPA Goal: 10% of area inside 200 nm 100,000 sq km

NL Offshore Area 1,800,000 sq km

Sedimentary Basins 1,000,000 sq km

Areas with License Rounds/Parcels 170,000 sq km

Areas with Production Licenses 637 sq km

Single New field Production Area 40 sq km

Impact Area of Single Field on Seabed 5 sq km

Success Scenario of 6 Production Areas 5000 sq km

In 30 years we estimate only 0.3% Offshore Area will be utilized for offshore production in the success scenario. • We have identified over 200 “oil seeps”. • Taken over 250 seabed cores • We have identified and mapped over 650 leads and prospects. Slick over Jean D’Arc Production Area Slick over West Orphan Exploration Area Cape Freels: 2020 License Round Announced Jul 2016 “Most Attractive Undrilled Licenses Prospect in the offered in 2016 round – ELs Awarded World” Back in 2018 in 2016

2018 Call for Bids Announced Feb 2017 Cape Freels: 2020 License Round Announced Jul 2016 “Most Attractive Undrilled Licenses Prospect in the West Orphan offered in BP, Hess, Noble, 2016 round – ELs Awarded World” Back in 2018 Navitas and Delek in 2016 $461M

2018 Call for Bids Announced Feb 2017 • “95% of Benthnic Populations are damaged 2020 License Round by Bottom Trawling” Announced Jul 2016 • 98% of Commercial Fishing occurs in waters less than 800 meters Licenses offered in ELs Awarded 2016 round – in 2016 Back in 2018

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2018 Call for Bids Announced Feb 2017 • 95% of benthnic Populations damaged is 2020 License Round caused by Bottom Announced Jul 2016 Trawling • 98% of Commercial Fishing occurs in waters Licenses less than 800 meters offered in ELs Awarded 2016 round – • Yet, 92% of the NE Slope in 2016 Back in 2018 Fisheries Exclusion Area is 800m or deeper

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2018 Call for Bids Announced Feb 2017 Prohibitions • All bottom contact fishing 2020 License Round activities. Announced Jul 2016 • No other human activities that take place in this area are incompatible with the Licenses conservation of the ecological offered in components of interest. This 2016 round – ELs Awarded area is part of a larger fisheries in 2016 Back in 2018 area closure.

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2018 Call for Bids Announced Feb 2017 • Nalcor Energy can collaborate with DFO officials to identify areas of high prospectivity. • “Hot spots” can be avoided. • can meet its MPA commitments while achieving economic balance THANK YOU