Hon. Mike Currie, Minister of Development and Technology, today announced that Rally Energy Corporation of Calgary, Alberta has been issued an onshore oil and natural gas permit for exploration of approximately 66,000 acres (26,720 hectares) in the Evangeline region of Prince County.
The term of the permit is for six years. Presently, Rally Energy Corporation is undertaking a $1 million seismic program within their adjacent permits in the Summerside and Kensington areas. The results of this program will better identify targets which may enable the company to drill up to five exploratory wells later this year.
Minister Currie noted the heightened level of exploration for natural gas on Prince Edward Island.
"To date, over 1 million acres are under oil and natural gas permit in Prince Edward Island," stated the Minister.
"The recent investment in exploration by Rally and other permit holders increases the possibility of the province developing indigenous gas resources."
The issuance of the Rally permit marks the first time exploration rights on PEI have been awarded as a result of a competitive bid process. Previous oil and natural gas permits were secured on a first come first serve basis.
"Changes to the legislation were necessary to allow an assessment of the market value of exploration rights and bring Prince Edward Island's regulatory framework in line with those of neighbouring provinces and the federal government," said the Minister.
Rally Energy Corporation is a junior oil and gas company that is publicly traded on the TSX Venture exchange. Prince Edward Island is now the company's focus of its core operations. In addition to being awarded the Evangeline permit, the company has acquired working interest in seven other oil and gas permits in the province.