New Offshore Oil and Gas Land Open for Bidding

Interest in Nova Scotia's offshore has been heating up this year, and the Canada - Nova Scotia Offshore Petroleum Board is stoking the fire by releasing new real estate to potential explorers.

The board has called for bids on two deep water parcels located about 160 kilometres southwest of Sable Island. The combined potential resource in the two parcels is estimated at between 3.3 to 10 trillion cubic feet of natural gas in place.

"This call builds momentum for new oil and gas exploration in offshore Nova Scotia," said Energy Minister Richard Hurlburt. "We have seen renewed interest in our resource this year, and we want to keep that interest growing."

In July, U.S. firms Ammonite and Catheart won the rights to explore two parcels near ExxonMobil's Sable Project. Two weeks ago, the board announced successful bids for two industry nominated parcels in offshore Nova Scotia.

The board's current call continues a new policy that offers companies more flexible, lower entry cost exploration licences that reward early activity and encourage a broader range of companies to explore and invest.

"Nova Scotia's new policies were designed to attract more customers to our offshore," said Mr. Hurlburt. "This industry is a big contributor to the provincial economy, creating jobs and generating royalties that help pay for hospitals, schools, and roads. It is important that we continue to stimulate activity."

Recent highlights of Nova Scotia's offshore include:

• a resource potential of more than 40 trillion cubic feet of gas potential and 2 billion barrels oil potential
• the Sable Offshore Energy Project producing about 400 million cubic feet of gas per day
• EnCana's development of Deep Panuke natural gas field (first gas targeted for 2010)
• the new work expenditure bid has been cut by 50 per cent to $500,000 with 150 per cent credit on the first three years of exploration costs
• four firms winning exploration rights in offshore Nova Scotia this year