When an operator explores the Canada-Nova Scotia offshore area, they’re in search of significant petroleum resources for the purpose of production. Discoveries made by operators are either declared significant or commercial.
Declared Significant Discoveries
After a discovery has been made, the operator may apply to have it declared a significant discovery. A significant discovery, through well flow testing, typically suggests the existence of oil or gas resources with the potential for sustained production.
If the significant discovery is declared over an exploration licence, an operator may then apply for a significant discovery licence. If the significant discovery is declared over crown reserve land where an exploration licence has not been granted, the significant discovery area can be nominated for a significant discovery licence through the Call for Bids process. We may increase, decrease or revoke the significant discovery area, based on the results of further drilling.
Declared Commercial Discoveries
After a discovery has been made, the explorer may apply to have it declared a commercial discovery. A commercial discovery is one that has demonstrated it contains reserves that will justify the investment of capital and effort to bring the discovery to production.
If the commercial discovery is declared over an exploration licence or significant discovery licence, the licence owner may then apply for a production licence. If the commercial discovery is declared over crown reserve land, the commercial discovery area can be nominated for a production licence through the Call for Bids process. We may increase, decrease or revoke the commercial discovery area, based on the results of further drilling.