StatoilHydro has announced that it will drill its first offshore prospect as operator in Canada in the fourth quarter of 2008, at the Mizzen prospect off the east coast of Newfoundland and Labrador.

StatoilHydro has signed an agreement whereby Husky Energy will participate in the exploration well and will earn a 35% interest in Mizzen.

Geir Jøssang, Head of StatoilHydro Canada, commented, “We are very excited about starting drilling operations offshore Canada. Canada is becoming an important contributor to StatoilHydro’s international portfolio.”

StatoilHydro signed a rig sharing contract with Petro-Canada and Husky, bringing the Transocean-operated Henry Goodrich rig to the east coast of Canada, expected to arrive in Newfoundland this summer.

“The Flemish Pass Basin is a new and almost unexplored area on Canada’s east coast,” explains Johan K. Mikkelsen, Head of StatoilHydro’s offshore business in Canada.

“We are already participating in production from the Terra Nova and Hibernia fields and we have learned a lot from our partners in the 12 years we have been in Canada, and now look forward to preparing for our own drilling operations here,” he added.