A license must be obtained prior to drilling. A license confers upon the licensee: the right to explore for petroleum in the licensed area; the right to do exploration work outside the licensed area bearing on the petroleum prospects of the licensed area, to such extent and subject to such conditions as the Commissioner may prescribe; with respect to such right the licensee shall be in the position of a holder of a preliminary permit; the exclusive right to conduct test or development drilling in the licensed area and to produce petroleum there from. License must be obtained prior to drilling. The license is granted initially for a period of 3 years and can be extended for up to 4 more years.