Minister Approves Onshore Exploration Agreement

Interest in Nova Scotia's oil and natural gas reserves continues to heat up with the approval of another onshore exploration agreement.

Energy Minister Richard Hurlburt has granted an exploration licence to Forent Energy Ltd. to explore for oil and gas on land in Antigonish, Guysborough and Pictou counties. The licence was awarded following a call for bids announced earlier this year.

"Nova Scotia's onshore is a frontier with great potential," said Mr. Hurlburt. "We are committed to working with companies like Forent to encourage continued exploration of our onshore oil and gas reserves."

Forent Energy has been an oil and gas producing company in Alberta since the late 1990's and revised its exploration efforts to focus on Nova Scotia opportunities in 2006. The company's president, Dennis Forgeron, welcomed the news.

"This is great news for the future and growth of the company," said Mr. Forgeron. "As someone raised in Cape Breton, it's great to see opportunities in oil and gas develop here at home. Our hope is to help make the province's onshore potential become a reality, not only for us, but for Nova Scotia."

Onshore conventional exploration agreements are valid for three years with an option to renew at the end of the third year.

In order to be awarded the rights to explore a block of land, companies must go through a competitive bidding process. Successful bidders are chosen based on the financial value of the company's work plan over the term of the agreement, its technical capabilities, and its industry experience.

Forent Energy Ltd. is an oil and gas exploration company with holdings in Alberta and Nova Scotia. This is its first exploration agreement in Nova Scotia. Forent has already been operating in the Stewiacke area on an exploration licence held by EOG Resources.