Calls for Onshore Exploration Proposals

There's more to the Nova Scotia petroleum industry than the offshore. Oil and gas exploration on land is now a growing part of the play.

The Petroleum Directorate has issued a call for proposals to explore for oil and gas on more than 700,000 hectares of mainland Nova Scotia, a move that reflects the unprecedented interest in petroleum development in the province.

"Understand that this is industry-driven -- that's critical because it means that not only the interest is there, but the initiative," said Premier Russell MacLellan, Minister responsible for the Petroleum Directorate. "This call for exploration proposals is really a reaffirmation that the petroleum industry knows the potential here in Nova Scotia."

The 713,705 hectares are contained within three blocks of land in Cumberland, Colchester and Hants counties. The blocks comprise two in central Nova Scotia, along the Minas Basin south to Windsor, and one in northern Nova Scotia south of Amherst. Provincially protected areas are excluded from exploration.

The Petroleum Directorate will accept separate proposals for exploration of each block until 4 p.m., Sept. 8, 1998. Results will be announced within 90 days of the closing. If exploration agreements are issued, they will be for terms of three years each.

The history of petroleum exploration in Nova Scotia extends back to 1869 when the first recorded exploratory well was drilled. Since then, companies have drilled 103 wells. There have been a number of oil and gas deposits discovered, although not yet in quantities considered necessary for commercial production.

"If we reach agreements, and exploration proceeds, Nova Scotians will have a better idea of the potential for onshore oil or gas development in the province," said Premier MacLellan. "This can only help us shape our future to ensure we develop our resources to benefit Nova Scotians first."

NOTE: The following is intended for broadcast media.

The hunt for oil and gas is expanding in Nova Scotia.

The Petroleum Directorate has put out a call for

companies to bid on three tracts of land on mainland

Nova Scotia.

Premier Russell MacLellan says the decision to call

for bids on exploration rights comes from the petroleum

industry, which is interested in seeing if there's oil

and gas onshore.

The three parcels of land -- covering more than

700-thousand hectares -- are in Cumberland, Colchester

and Hants counties.