Taking its first steps into the unchartered waters of international coproduction, Red Ochre Productions has taken a minority stake in the $7.5 million feature Misery Harbour, the first official venture with Norway under the recently signed treaty.

A month of shooting in Scandinavia has just wrapped and the Newfoundland portion of the shoot is scheduled for November 21 to December 15. The first-time foray into international coproduction has already opened up the St. John’s, nf company to expanding opportunities in the Scandinavian market.

Over the past two years of putting the deal together, Red Ochre President Ken Pittman says many producers from Scandinavia have approached his company with scripts. Pittman is considering partnering up on two projects involving Norwegian companies and another two with Danish producers.

Pittman was first approached with the Misery Harbour project at mipcom two years ago. Sigve Endresen of Oslow, Norway-based Motlys Inc. was developing the script based on the book by Aksel Sandemose. Set in Norway in the early 1900s, a young boy, determined to become an author, runs away from home and takes a job on a schooner heading for North America. Harrassed by the crewmembers, he eventually takes refuge in a fishing community in Newfoundland.

Endresen intended to shoot a portion of the script in Newfoundland and was seeking a partnership with a local producer. In the fledgling production center of Newfoundland, Red Ochre was the most experienced in feature films, having produced Finding Mary March in 1987 (distributed by Malofilm, now renamed Behaviour), No Apologies in 1990 (distributed by Cine 360), and Anchor Zone in 1994 (distributed by Norstar, recently aquired by Alliance). The 14-year-old company has also produced numerous documentaries and half-hour dramas for tv.

Pittman immediately liked the script, but before wading into unknown waters, tested the potential partnership by suggesting some content changes to gauge the level of input the foreign producer’s would allow him. The Motlys’ team responded positively.

Another key factor was the experience of the production team. Sandemose and Kenny Sanders, a Scandinavian who had lived in the u.s. and written for American tv, were adapting the script. The line producer had a long list of credits in large-scale features and the director attached to the project – Nils Gaup – had directed the 1987 Academy Award nominated film Pathfinder and three other features since then.

The terms of the Norway/ Canada coproduction treaty call for a minimum 20% participation by the Canadian company and the portion of the budget spent in each country must reflect the equity stake of the local producer.

A production company in Denmark and Germany were also interested in joining the project. The potential German partnership fell through and a Swedish company came on board.

Based on the financing scenario and the portion of the movie to be shot in Newfoundland, the deal was structured with Red Ochre holding 20% equity in the project, Motlys with 55% and the remaining 25% split between Denmark’s Arena Film and Sweden’s Triangle Art Film Productions

The Scandinavian producers tapped a number of funding sources. Norsk Film Institutt, Nordisk Film and TV Fond, the Danish Film Institute and Straussberg-based Eurimage – a funding agency for Economic Union productions – put a mix of equity investment, grants and loans into the financing pot. As well distributors and broadcasters in the Scandinavian terrritories have come on board.

On the Canadian end, as an official treaty coproduction, Telefilm Canada’s Feature Film Fund provided $750,000 and Newfoundland’s film fund came through with equity funds representing 20% of the Canadian portion of the budget. The 35% provincial labor tax credit and 35% federal rebate can also be accessed. Alliance Releasing put up an advance of $150,000 for Canadian distribution rights. Goldwyn Films of the u.k. holds all international rights outside Scandinavia.

A London, England-based agent cast the main roles in Scandinavia and roughly 12 to 15 Canadians are being sought by several Toronto agents.

Pittman is crewing up a local team of approximately 15 and scouting locations which include the coastal area of Newfoundland, a forest near Gander and the St. John’s harbor. A five-day interior studio shoot is also lined up.

Rushes will be done at The Lab in Toronto. Post production will take place in Norway with delivery planned for next fall.

The layers of paperwork and legal contracts has been the most challenging aspect of the venture, says Pittman. ‘There are six to eight agencies that have to approve contracts in Canada so multiply that by four countries,’ he says of the time consuming and expensive process.

Still, the minority position in Misery Harbour is serving as a great testing ground, says Pittman. With some experience at international deal-making under his belt, he plans to seek a larger equity stake in further overseas partnerships.