6.    Exploration and post-exploration expenses

 

If a company holds an oil and gas right contemplated in paragraph (a) or (b) of the definition of ‘oil and gas right’ during any year of assessment-

 

(a)     that company is deemed to be carrying on a trade in respect of that oil and gas right; and

 

(b)     expenditure and losses incurred by that company in respect of that oil and gas right are deemed to be incurred in the production of income of that company.