News release

New Player Joins Nova Scotia's Onshore Oil and Gas Industry

Energy (June 2002 - July 2018)

St. Brendan's Exploration Ltd., an Alberta-based exploration and production company with a branch in Nova Scotia, is the newest player in the province's onshore oil and gas industry.

The province announced today, Sept. 13, the company was the successful bidder for the exploration rights for three onshore blocks known as Malagash in Cumberland and Colchester counties, Truemanville in Cumberland County and Scotsburn in Pictou and Colchester counties.

"It is exciting for our onshore industry to have a new company interested in our potential and investing in our province, which creates jobs and grows the economy," said Energy Minister Charlie Parker. "With our resource potential, we can have economic development and environmental protection at the same time.

"Our regulations are designed to ensure that ground water and the environment are protected as our onshore oil and gas industry evolves, or these activities won't be approved."

The province finalized exploration lease agreements with the company on the three blocks earlier this week. The leases have a combined value of $10.4 million in exploration spending over three years. There are also two options for renewal for a potential total of nine years.

The agreement means St. Brendan's will be the only company allowed to propose conventional oil and gas exploration in the areas, which cover about 335,500 hectares and exclude protected and coastal areas. Full land descriptions and maps are available at www.gov.ns.ca/energy/oil-gas/explore-invest/maps.asp .

The agreements do not give a company permission to proceed with any work. Specific approvals will be necessary and no work can be started without an application, review by multiple departments including the Department of Environment, landowner approval and public presentations.

"In the first year of a lease agreement, companies generally do research and pull together existing information on the block area to identify targets for additional exploratory work," said Mr. Parker. "This could include a proposal to conduct seismic testing or drill an exploratory well. Any exploration work is 100 per cent funded by industry and each activity must have a separate application to government and demonstrate measures to protect the environment."

The lease agreements have nothing to do with hydraulic fracturing.