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Agreement for drilling the West Bonne Bay Prospect

June 28, 2006, 11:00 CEST

Hydro has entered into a farm-in agreement with Husky Energy Inc. for the drilling of a well in the Jeanne dArc Basin, offshore Newfoundland and Labrador.

Hydro currently holds a 90 percent working interest and is the operator of the West Bonne Bay SDL 1040. Under the terms of the farm-in agreement, Husky will receive a 25 percent working interest in the prospect and an additional 7.5 percent in the North Ben Nevis SDL 1008, where Husky has a working interest of 65.6 percent. Husky will serve as operator for the drilling program.

Mr. Johan Kristian Mikkelsen, President of Norsk Hydro Canada Oil & Gas, is pleased to welcome Husky Energy as a partner in the drilling of this well.

“By using the drilling rig “Rowan Gorilla VI” under contract to Husky Energy, we have the opportunity to drill the well during a period when the market for drilling rigs is extremely tight,” he says.

The West Bonne Bay prospect is located in Significant Discovery License (SDL) 1040, approximately 320 kilometres southeast of St. John’s, in close proximity to the Terra Nova oil field, and in water depths of 100 metres.

The well will be drilled using the jack-up drilling rig “Rowan Gorilla VI”,  which is under contract to Husky Energy. Drilling of the West Bonne Bay well is expected to begin in late June and will take approximately 60 days.