NEW CYCLE OF PETROLEUM EXPLORATION ONSHORE NOVA SCOTIA

Nova Scotia has entered a new era in terms of oil and gas activity both in the offshore and the onshore. This paper will review recent developments in the onshore jurisdiction ranging from government's commitments to this new industry through industry's reaction to discoveries in neighbouring onshore jurisdictions and advances in seismic acquisition and processing that provide insights into new play concepts.

Government has a role in providing a clear transparent regulatory path for our onshore explorers and has responded with a new Energy Strategy and the creation of a new Energy Act. This reflects our commitment in encouraging activity while guaranteeing prudent resource management and environmentally sound practices.

The petroleum industry has made significant progress in New Brunswick, Prince Edward Island and Newfoundland which has elevated the level of interest in Nova Scotia. New Brunswick's success has occurred in the same Paleozoic packages of rocks that are present in Nova Scotia. Industry has demonstrated it's interest here with the response to the acquisition of exploration rights and the last three years of seismic and drilling which has resulted in an unprecedented level of activity. The new generation of seismic has developed a number of new play concepts which will be tested in the next 12 - 18 months.