BP has opted to surrender half of its acreage in Exploration License 2434R offshore Canada’s Nova Scotia after failing to drill the required number of wells, according to the Canada-Nova Scotia Offshore Petroleum Board.

The petroleum board said BP also agreed to pay a $1 million drilling deposit to extend the first phase of its exploratory license, which was scheduled to end Jan. 14, by one year.

The steps are being taken after BP drilled only one of the four wells it was required to drill within six years of the effective date of its exploration licenses for the land, the petroleum board said in a Jan. 15 news release.

If BP decides to drill another well during its extended first phase exploration period, the board said the company must apply for authorization.

If the company decides not to drill another well during the extension period, BP would forfeit the drilling deposit paid and pay a further $2 million drilling deposit to extend the first phase for another year. Another option would be to forfeit the drilling deposit paid and surrender 50% of the remaining lands before moving on to the second phase, which consists of the rest of the nine-year exploration license term, the board said.

Offshore