Canada: C-NLOPB Calls for Flemish Pass Acreage Bids

The Canada-Newfoundland and Labrador Offshore Petroleum Board announced of a Call for Bids in the Newfoundland and Labrador Offshore Area. Call for Bids NL12-02 (Area “C” – Flemish Pass) will consist of one parcel consisting of 208,899 hectares.

Interested parties will have until 4:00 p.m. on November 1, 2012 to submit sealed bids for this parcel offered in Call for Bids NL12-02. The sole criterion for selecting a winning bid will be the total amount of money the bidder commits to spend on exploration of the parcel during Period I (the first period of a nine-year licence). The minimum bid for the parcel offered is $1,000,000 in work commitments.

This Call for Bids contains provisions for rentals during the term of an exploration licence and during the term of any resulting significant discovery licence. The Call for Bids contains a sample exploration licence which incorporates a sample significant discovery licence. The area has been previously assessed to identify any mitigative measures that may be required in relation to exploration activity on the parcel.

Minimum Bid

C-NLOPB will require a work Expenditure Bid of at least $1 million for the parcel in the Flemish Pass. Upon announcement of the bid results, the Bid Deposits of unsuccessful bidders will be returned, without interest, as soon as possible.

Subject to Ministerial approval, a successful bidder will be issued an exploration licence for a term of nine years; however, during Period I a well must be spud to validate the licence for the full nine-year term.

For full details of the Call for Bids click here.

[mappress]
Source: C-NLOPB, April 6, 2012