Nova Scotia's premier, Tim Houston, announced that Inceptio Oil and Gas missed the deadline to pay the required deposit for an offshore oil and gas exploration licence.
What happened
Inceptio Oil and Gas, led by James Edens, was approved for a $210-million exploration bid in April, but needed to pay 25% of the bid price, approximately $52 million, to obtain a licence. Despite extensions from the provincial and federal governments, the company was unable to secure enough domestic investment to meet the deadline.
According to Edens, foreign investment was sourced, but limited by reviews for foreign ownership in natural resources, which had incompatible timelines with the company's security-posting needs. The Canada-Nova Scotia Offshore Energy Regulator stated that legislation requires an exploration licence to be issued within six months of the call for bids closing, and with the deadline passed, a new call for bids will be issued.
Premier Houston expressed that the lack of progress is a setback, but the province remains committed to developing its offshore resources. The province has significant potential for oil and gas, with about 90-billion cubic metres of gas confirmed to exist on the Scotian shelf.
