Are exploration licenses and production leases of shale gas really separate things?

stanley_aug18Our government says not to worry about seismic testing, because it is only exploration.

NB’s Oil and Gas Act – 26(3), explains how to change from exploration to production:

 A license to search may be converted to a lease in its entirety at the end of the license term, if in the opinion of the Minister, all exploration commitments under the license have been met.  

What this means:  As long as a company spends the required amount during the phase of exploration, it is guaranteed a production lease.  There is no process in between. A license to explore becomes a lease to begin extraction.


Resource Link

Find out whether you live within a lease area with this interactive map: