'petrengr1' pid='22489' datel Wrote:
'Palm' pid='22488' datel Wrote:The "nine block" limit falls under the definition of a "Location". The O&G Act states that a location cannot contain more than 9 blocks. Then under Sec 37 in describing the PRL application process for someone with a PPL, it states:
(1) A licensee whose petroleum prospecting licence is in force in respect of the blocks that constitute a location may, within two years after the date on which the blocks were declared to be a location, or such further period as the Minister allows, make application to the Director for the grant of a petroleum retention licence in respect of such of the blocks as the licensee satisfies the Minister contain a gas field or a part of a gas field or, for the better administration of petroleum activities, should be included in a petroleum retention licence.
(2) A licensee may, during the term of a petroleum prospecting licence, make application to the Director for a petroleum retention licence in respect of any block or blocks within the licence area—
(a) that he satisfies the Minister contains or contain a gas field or part of a gas field, or, for the better administration of petroleum activities, should be included in a petroleum retention licence; and
(b) that do not at the time of making the application constitute a location."
So I believe they would not be limited to the 9 blocks per (2). It would be interesting to know which blocks make up those included in the "Location" granted to Tri/Bwata.
The nine blocks in the location would include all of the blocks that touch the block that the discovery was made. If you draw a square on a piece of paper. You can see that there are eight squares that would touch the square where the discovery was made, making a total of nine.
The maximum number of blocks to be included in a location is nine. The maximum number of blocks for a PRL is only limited by the size of the PPL and what you can prove to the Mininser that contain gas or is needed for your operation. My opinion.
Agree Pet except not sure if/how the "You can see that there are eight squares that would touch the square where the discovery was made, making a total of nine." applies in going from the "location" area to the PRL area. For instance PRL 15 (as seen on slide 6 here http://www.interoil.com/iocfiles/documents/investorrelations/presentationanddocuments/2010/2010-11-22_IOC_Exploration_Investor_Presentation.pdf) consists of 9 blocks, but it is in a shape like the state of Utah. In looking at the definition of a "location" I don't think all of the blocks in the location have to actually touch the discovery block based on the language in Sec 34 (4) (b). This seems to allow the 9 blocks for a location to be in the shape of PRL 15 from what I can see.:
34. Declaration of location.
(1) In this section, "discovery block" means a block in which petroleum has been discovered.
(2) Where petroleum has been discovered in a block within a tenement (not being a block that is or is included in a location) the Minister—
(a) shall, on receipt of a request from the licensee; and
(b) may in any case,
declare by notice in the National Gazette—
© in a case referred to in Paragraph (a)—the discovery block and not more than eight adjoining blocks within the licence area that are nominated by the licensee; or
(d) in any other case—the discovery block and such adjoining blocks as the Minister thinks proper,
to be a location for the purposes of this Act.
(3) At the request of the tenement holder or of his own volition the Minister may, by notice in the National Gazette—
(a) include in a location additional adjoining blocks; or
(b) revoke the declaration of a location in respect of one or more blocks,
but a location may not at any time include more than nine blocks.
(4) For the purposes of this section, a block adjoins a discovery block, if the graticular section that constitutes or includes the first-mentioned block has a side in common with, or touches—
(a) the discovery block; or
(b) any block that has a side in common with, or touches, the discovery block."