Please see below for an update on BP Canada Consolidated Exploration Licence (EL) 2434R:
BP Canada Energy Group ULC (BP Canada) has notified the CNSOPB that it will forfeit its $1 million drilling deposit paid in 2019 and pay a further drilling deposit of $2 million to extend Period 1 for an additional year.
This additional extension period will expire on January 14, 2021.
What does this mean moving forward?
If BP Canada decides to drill another well during this Period 1 extension, it will need to apply to the CNSOPB for authorization. Should we receive an application, we will post it on our website.
If BP Canada does not drill a well by January 14, 2021, it will need to select one of the following as outlined in the terms and conditions of the consolidated EL:
- Forfeit the 2020-2021 drilling deposit ($2 million) and pay a further drilling deposit ($3 million) to extend Period 1 for an additional year.
- Forfeit the drilling deposit and surrender 50 per cent of the remaining lands. The EL would then move into Period 2.
- Allow the EL to expire on January 15, 2021.
At any time, an EL holder can submit a partial or full surrender of lands.
Further updates will be provided as they become available.
Canada-Nova Scotia Offshore Petroleum Board
Cell: 902-410-6402 | email@example.com