Province Welcomes New Interest in Offshore Oil and Gas Industry

Renewed interest in offshore Nova Scotia's oil and gas resource is good news for the province, said Energy Minister Richard Hurlburt.

Two companies, Ammonite Corporation and Catheart Energy Inc., are the successful bidders for the new type of exploration licences announced late last year by the Canada-Nova Scotia Offshore Petroleum Board for two parcels off Nova Scotia. The work-expenditure bids were $103 million and $114 million respectively for the two parcels near Sable Island.

"These are the types of entrepreneurial companies that we wanted to attract here when we worked with the offshore petroleum board on new rights issuance policies," said Mr. Hurlburt. "These companies have tremendous expertise in the business of finding and developing petroleum deposits."

Mr. Hurlburt said the board's announcement, combined with a industry-nominated offshore call for bids in late June, shows momentum is building for Nova Scotia's offshore.

Mr. Hurlburt thanked the board for its hard work to prepare the recent calls for bids, including the preparation of geoscience data and studies related to the parcels.

The province, with the federal government and board, has been a leader in stimulating activity, through measures such as:

• co-funding the board's data-management centre, an online centre of geological data, seismic studies and core samples
• reprocessing government-owned seismic data of properties around Sable Island, with release to potential investors and explorers
• an economic-scoping model for small-field development around Sable Island, available at no cost
• ongoing efforts to market Nova Scotia's offshore in major oil and gas centres around the world
• new terms and conditions for exploration licences in offshore Nova Scotia

"This industry is a significant contributor to the provincial economy with more than $500 million in royalties this year and many, many jobs, so it is important that we continue to find new and innovative ways to stimulate activity," said Mr. Hurlburt.

"The province will continue to work with the board and the federal government on new and enhanced geoscience, policies, regulations R&D, and marketing in the coming months to continue building momentum in our offshore."