NOVA SCOTIA, Canada -- The Canada - Nova Scotia Offshore Petroleum Board has announced the results of the industry nominated call for bids NS08-1 for two new offshore exploration licenses (EL).
Alberta Ltd. has won Parcel 1 with a work expenditure bid of $6,651,154. Shin Han F&P won Parcel 2 with a work expenditure bid of $109,005,200.
The work expenditure bid represents the amount of money the bidder intends to spend on exploration pursuant to the EL terms and conditions. An EL carries a maximum term of nine years.
Under the EL, companies are given three years upfront to assess the geology, raise financing, attract a farm-in partner or surrender the license before they are required to post large financial requirements. During this period, companies are required to provide the board with an annual work plan which must be approved in order for the license to remain valid.