Section 7
Exploration licence
The Petroleum Authority may issue an exploration licence in respect of the whole or any part of the area of the land applied for, and every exploration licence issued under this Act may authorize the licensee thereof to explore for petroleum over the whole or any part of the area of the land specified in that licence:
Provided that—
(i)
an exploration licence shall not be issued in respect of an area of land which has already been covered by a petroleum agreement entered into under section 8; and
(ii)
nothing in this section shall prevent the Petroleum Authority from issuing in respect of the same area of land more than one exploration licence or another exploration licence or licences to other person or persons.
(2)
Every licensee shall enjoy rights and liberty granted under his licence during the continuance thereof in common with other licensees to whom exploration licences in respect of the same area may have been issued or may thereafter be issued.
(3)
Every exploration licence shall be for an initial period of two years and thereafter may be extended from time to time upon an application for the extension thereof made and supported by evidence that the licensee has in fact carried out during the currency of the licence exploration work upon a reasonable scale.
(4)
The licensee may at any time apply to the Petroleum Authority for a petroleum agreement in respect of the whole or any part of the area held under his exploration licence; and upon the issue of a petroleum agreement covering the area or any part thereof all
Petroleum Mining 9
exploration licences covering that area or any part thereof shall determine without the Petroleum Authority being liable to pay any compensation to licensees.
(5)
An exploration licence shall be in the form set out in the
Second Schedule:
Provided that the Petroleum Authority may make such modifications and exclusions and may add such additional clauses covering ancillary matters as the Petroleum Authority may deem fit.