Offshore East Coast Canada production comes from our interests in the Terra Nova field, which we operate, as well as the partner-operated Hibernia and White Rose fields. Work continues to develop additional production from these existing projects and to bring the latest Petro-Canada partnered project, Hebron, into development.

The East Coast team is committed to continual improvement in the operation of the Terra Nova field. Significant efforts have focused on enhancing our safety culture and improving our environmental performance.

In 2009, Petro-Canada resumed drilling activity on the East Coast to support continued development of the Terra Nova field as well as exploration activity in the Jeanne D’Arc Basin.

Year-over-year, Terra Nova has taken steps to reduce the amount of oil-in-water content in produced water, which is discharged from the installation. We also continue to improve the performance of our gas compression and flaring systems which have facilitated lower flare volumes, thereby reducing greenhouse gasses (GHGs) and air pollutant emissions from the Terra Nova Floating Production, Storage and Offloading vessel (FPSO).

In addition to bringing business benefits to Newfoundland and Labrador, we are also committed to contributing to the community. Petro-Canada has long been associated with supporting various initiatives and organizations in Newfoundland and Labrador. In 2008, Petro-Canada sponsored a “Habitat for Humanity” home building project in St. John’s. For 2009, the Company will assume the lead sponsorship role in the local Junior Achievement “Newfoundland and Labrador Business Hall of Fame” event, celebrating the role of business and entrepreneurship in society. Additionally, Petro-Canada will be supporting a science program called “Science to Go”. Administered by the Newfoundland and Labrador Science Centre, this program is designed to deliver informal science and technology education to school children and to encourage future leaders in those fields.