In December 2008, PDIP was informed that it had been awarded further hydrocarbon exploration rights in the 2008 Call for Bids offered by the Canada - Newfoundland Offshore Petroleum Board (C-NLOPB). The successful bid was for an offshore parcel comprising 211,985 hectares adjacent to PL2002-01 which PDIP currently holds.
The successful bid was based upon the Company committing to expenditure of C$600,000 in exploring the parcel during the initial five-year period of a nine-year Exploration Licence. PDIP has lodged a deposit equal to 25% of this work commitment with the C-NLOPB, which will be offset against future expenditure. If significant quantities of petroleum resources are discovered as a result of exploration work, PDIP may then seek a Significant Discovery Licence from the C-NLOPB. Any Significant Discovery Licences issued in respect of lands resulting from the Exploration Licence will be subject to rentals that will escalate over time.
As stated in Enegi’s Competent Persons Report at the time of the IPO, TRACS International Limited believes that two of the structures that it has identified under Petroleum Lease 2002-01, Garden Hill South and Garden Hill Central, extend offshore. Management are currently considering the best way to advance the development of EL1116 and will update shareholders once the plan has been determined.
Areas of operation
Port au Port Peninsula
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