1. September, 2002 An Overview of Atlantic Canada Exploration and the Environmental Legislative Process, Offshore Nova Scotia, Canada John Hogg Vice President, Atlantic Canada Offshore New Ventures Exploration

2. Facts about EnCana Corporation n High quality assets – Opportunity Rich Portfolio n Strong North American natural gas strategy n Superior oil growth; domestic and international n Balance sheet positioned for growth n 590,000 BOE daily production (2002F, after royalties); 64% gas n 2.3 billion BOE proved reserves (year-end 2001, after royalties); 51% gas n 90% of reserves and production in North America 36 million acres net undeveloped land n Approximately US$20 billion Value (as of July 24, 2002)

3. Division Breakdown 2002 EnCana Capital Budget US$3.2 Billion Gross* Onshore North America Breakdown SAGD 6% Syncrude 9% Natural Gas 63% Other Oil 22% Offshore & New Ventures Exploration 14% Offshore & International Development 12% Onshore North America 69% Marketing & Midstream 5% * Prior to planned net dispositions of US$950 million

4. Halifax A World Class International Independent Houston Calgary Quito London Dubai Bahrain/Qatar Yemen Australia U.K. North Sea Atlantic Canada Ecuador U.S. Gulf of Mexico Offices International Projects Legend Rio de Janeiro Sana’a Doha N’Djamena Chad Ghana Alaska/Mackenzie Delta Brazil

5. Western Canada Atlantic Canada U.K. Gulf of Mexico Ecuador U.S. Rockies Six Key Growth Platforms

6. Alaska/Mackenzie Delta Gulf of Mexico North America Offshore Basins Scotian Shelf US Eastern Seaboard Newfoundland

7. North of 60° Saskatchewan Grand Banks and Scotian Shelf Other Frontier BritishColumbia 5050 Alberta 270270 6363 175175 (includes other regions offshore East Coast & West Coast) 9 Remaining Produced Source: National Energy Board / Canadian Association of Petroleum Producers Canada: How Much Gas is Out There? 8989

8. US Atlantic Margin n Area > 250,000 km 2 n Reservoir –Jurassic Carbonates –Jura-Cretaceous Sands –Tertiary Sandstones n Source –Jurassic\Cretaceous Marine Shales n Traps –Listiric Normal Fault Plays –Stratigraphic Pinch-outs –Reef Margins n Potential (USGS) –16 - 45 Tcf –1 - 4 Billion Barrels

9. Halifax St. John’s Scotian Shelf GrandBanks Sable Offshore Energy Project 150 km St. John Hibernia Charlottetown TerraNova Deep Panuke Atlantic Canada Bangor

10. Hibernia Production Platform

11. Terra Nova Floating Production System

12. Halifax Atlantic Canada Gas Transportation Anticosti Basin MagdalenBasin Scotian Basin EnCana’s Deep Panuke 400 MMcf/d – 2005 St. John’s SOEI ~ 500 MMcf/d Boston

13. Sable Offshore Energy Platforms

14. Sable Thebaud Central Facility

15. Deep Panuke Facilities Design

16. Atlantic Canada Mesozoic Subbasins 60°W 65°W 70°W New Brunswick P.E.I. Newfoundland GrandBanks Laurentian Channel 2000 km 45°N 200m Nova Scotia Scotian Shelf 2000m 2000m Quebec 200m 200m 45°W 50°W55°W 45°N 50°N Halifax St. John’s

17. Atlantic Canada Regional Land Overview 45°N 50°N P.E.I. Newfoundland Grand Banks 120 Miles Nova Scotia Scotian Shelf 2000m 200m NewBrunswick 60°W 65°W55°W50°W 200m 2000m Laurentian Channel 45°W EnCana Corporation Acreage

18. Scotian Shelf Subbasins Sydney LaHave New Brunswick P.E.I. 200m 2000m 60 Miles Scotian Shelf Halifax Fundy 45° N Abenaki Georges Bank Shelbourne Banquereau Orpheus Graben Laurentian Scotian Salt Province 60°W65°W55°W Nova ScotiaSOEI

19. Regulation of Canada East Coast Waters n The Government of Canada and the Atlantic Provinces agreed to jointly administer the offshore by use of independent offshore boards n Two Boards: Canada-Nova Scotia and Canada- Newfoundland Offshore Petroleum Boards n Boards consist of two federal, two provincial and one joint members n Each Board Staff Administers: HSE, Resource Rights, Local Benefits, and Operations Management

20. Canada Nova Scotia Offshore Petroleum Board n Mission Statement n To regulate petroleum activities offshore Nova Scotia in an efficient, fair and competent manner. n Mandate n The Canada-Nova Scotia Offshore Petroleum Board is the independent joint agency of the Governments of Canada and Nova Scotia established pursuant to the federal Canada-Nova Scotia Offshore Petroleum Resources Accord Implementation Act and the provincial Canada-Nova Scotia Offshore Petroleum Resources Accord Implementation (Nova Scotia) Act. It is responsible for regulation of petroleum affairs and safe practices offshore Nova Scotia. n The Board's principal responsibilities include n Ensuring the safe conduct of offshore operations n Protection of the environment during offshore petroleum activities n Management of offshore oil and gas resources n Review of industrial benefits and employment opportunities n Issuance of licenses for offshore exploration and development n Resource evaluation, data collection and distribution

21. CNSOPB Land Issuance & Program Procedures Overview Nomination of Land CNSOPB Strategic EA Call for Bids Exploration License Seismic Program Geophysical Program Geotechnical Program Drilling Program

22. Environmental Procedures for EL’s Standard Field Program (Common) Environmental Assessment (EA) Oil Spill Response Plan (OSRP) Additional Program Specific Requirements Program’s Approval Reporting Operational Procedures Consultation Process PLANNING REPT. OPS

23. Environmental Procedures Seismic Program (Specific Process) Environmental Assessment Identify critical time/areas for fishing/mammals/spawning OSRP Program’s Approval FLO Report Fisheries Liaison Observer (FLO) Ramp-up of airguns Consultation FEAC (Fisheries Environmental Advisory Committee) Meeting Direct information to Fisheries Representatives Consultation through Canada- Nova Scotia Offshore Petroleum Board (CNSOPB) and the Federal Departments of Environment Canada and the Department of Fisheries and Oceans (DFO) Notices to Mariners Fisheries Compensation PLANNING REPT. OPS

24. Environmental Procedures Exploration Drilling Program, Pre-Drill (Specific Process) Environmental Assessment OSRP Program’s Approval Consultation FEAC (Fisheries Environmental Advisory Committee) meeting direct info to fisheries reps consultation through CNSOPB, Environment Canada and DFO PLANNING Baseline Benthic Data Drilling Chemical Screening Rig’s Metocean Equipment Metocean Data for Certifying Authority

25. Environmental Procedures Exploration Drilling, While Drilling, (Specific Process) Physical Environmental Monitoring Program (meteo, waves, currents) Consultation Notices to Mariners Fisheries Compensation REPT. OPERATIONS OWTG (oil on cuttings, bilge/ballast/deck drainage water, sanitary/food waste…) Environmental Monitoring Program (EMP) (bird monitoring, benthic survey, tainting study…) Metocean End of Well Report Env. Compliance Monitoring Data ECM Rpt FLO Report FLO (optional)

26. Environmental Procedures Environmental Assessment Process 2003 Modifications n Existing CNSOPB Process (Timelines) n 30-day review by CNSOPB, DFO, Environment Canada n NS Seismic Class Screening EA (1998, LGL document) n NS Drilling Generic Assessment (2000, LGL document) n New CEAA (Canadian Environmental Assessment Act) Process Timelines n Effective Q1/03 (earliest) n Screening Study: wellsite surveys, seismic surveys, and exploration drilling in area previously assessed under CEAA n 6-month review n Comprehensive Study: exploration drilling in new area n 12-month review

27. Websites for Additional Information n Canada Nova Scotia Offshore Petroleum Board –www.cnsopb.ns.ca www.cnsopb.ns.ca n Canada Newfoundland Offshore Petroleum Board –www.cnsopb.nfnet.com/ www.cnsopb.nfnet.com/ n Terra Nova Project –http://www.terranovaproject.com/ http://www.terranovaproject.com/ n Hibernia –www.hibernia.ca/ www.hibernia.ca/ n Sable Offshore Energy Inc. –www.soep.com www.soep.com