Land Lease Extension Confirmed

The Department of Energy confirmed today, July 5, that it is granting PetroWorth Resources a one-year extension to its land lease agreement for the Lake Ainslie block in Inverness County.

The extension has nothing to do with hydraulic fracturing and it does not give the company permission to proceed with any activity.

"I want to make it clear that PetroWorth cannot undertake any work as a result of this lease extension," said Energy Minister Charlie Parker. "This extension means that PetroWorth remains the sole company allowed to apply to explore in this area. No decision has been made on its application to drill an exploration well."

PetroWorth Resources applied last fall to drill a traditional exploration well in search of oil, not shale gas. It does not include the use of hydraulic fracturing.

No date has been set for a decision. The lease extension is until July 15, 2012.

A decision on the exploration well will be made after all information is reviewed, including the results of aboriginal consultation, which is not finished.