Onshore Momentum Building
Onshore oil and gas companies are ramping up their exploration efforts as they near the end of the term of their exploration agreements.
Most onshore agreement holders are now in their second year of three-year agreements. As a result, up to four seismic programs are being conducted this summer. Depending on the outcome of these programs, as many as five wells could be drilled beginning as early as September and continuing over the next year.
Gordon Balser, the Minister responsible for the Nova Scotia Petroleum Directorate, finds the activity encouraging.
"Based on the success of the seismic programs this summer," he said, "we could see a significant amount of drilling activity that could lead to the first onshore oil and gas discovery in Nova Scotia."
There have already been several oil and gas discoveries in New Brunswick. Past success there, coupled with similar geological structures in parts of Nova Scotia, is causing cautious optimism about the potential for oil and gas discoveries onshore Nova Scotia.
Five companies, which hold a total of 17 parcels of land, are working to make the province's first onshore conventional discovery. Northstar Energy has six agreements; Amvest Nova Scotia has five; Hunt Oil and PanCanadian have one agreement each; and Consolidated Beacon Resources has two agreements. In addition, Amvest Nova Scotia has two coal gas agreements -- one for exploration and the other for production.
Under the Petroleum Resources Act, each conventional exploration agreement is awarded for a three-year term with the rights holder typically doing fieldwork and data compilation in their first year. In the second year, seismic programs and testing are usually completed. In order for the holder to renew the agreement for three more years, a well must be drilled in the third year.
More information about onshore activity in Nova Scotia can be found on the Nova Scotia Petroleum Directorate Web site at: www.gov.ns.ca/petro by following the links under Reference Library; Document Library; Reports/Updates.