Minister Approves Onshore Production Lease

Nova Scotia's first shale gas production lease has been approved in principle by Energy Minister Richard Hurlburt.

Elmworth Energy, the Canadian subsidiary of Triangle Petroleum Corporation, received approval in principle to develop shale gas in the Windsor area of Hants County, and in Kings County. This production lease represents the province's first onshore shale gas development, which is natural gas produced from shale.

"This project has the potential to generate substantial economic benefits for Nova Scotia," said Energy Minister Richard Hurlburt. "I look forward to working with Elmworth as it moves forward with the project."

"Elmworth is very pleased to gain approval in principle for the next phase of our Windsor block project," said Howard Anderson, president of Elmworth. "Nova Scotia is a great place to do business, and we hope our development will bring a new source of energy and continued economic benefits to the region."

The production lease will cover a 10-year period. The company will require additional government approvals for specific activities within the lease, including any new seismic programs drilling and pipeline construction.

Although this is the province's first shale gas production lease, it is the province's second onshore production opportunity. Stealth Ventures was granted a production agreement for coalbed methane or natural gas from coal in November 2007.

Elmworth Energy is an exploration company focused on emerging Canadian shale gas projects in Eastern Canada. Elmworth opened an office in Halifax in the fall.