Offshore Petroleum Board posts winning bids for Canadian licenses

The Canada-Nova Scotia Offshore Petroleum Board has announced the results of the industry nominated Call for Bids NS08-1 for two new offshore Exploration Licenses.

The Board has accepted the following winning bids:

Call for Bids NS08-1 -- Successful Bidders -- Work Expenditure Bid

-- Parcel 1
1164214 Alberta Ltd. -- Mr D. Jon Axford, President -- Calgary, Alberta, Canada -- $ 7,871,173.60

-- Parcel 2
Shin Han F&P Inc. -- Mr Yong Kim, President -- Dartmouth, Nova Scotia, Canada -- $ 129,000,000

The Work Expenditure Bid represents the amount of money the bidder intends to spend on exploration pursuant to the EL terms and conditions. An EL carries a maximum term of nine years.
Under the EL, companies are given three years upfront to assess the geology, raise financing, attract a farm-in partner or surrender the license before they are required to post large financial requirements. During this period, companies are required to provide the Board with an annual work plan which must be approved in order for the license to remain valid.

The Call for Bids NS08-1 was issued on June 25, 2008. At that time, interested parties were invited to bid on the parcels and the public was invited to submit written comments to the Board.
Bidding closed on October 30, 2008. Exploration Licenses will be issued by the Board on January 1, 2009, subject to Ministerial approval and in accordance with the Accord Acts.