(1)  Where an application for the grant of a licence has been made under section 39 or 39A and the applicant has furnished any further information as and when required by the Minister under section 40 (2) , the Minister, by instrument in writing served on the applicant –

(a) shall inform the applicant that he is prepared to grant to him a licence in respect of the blocks specified in the application; and

(b) may inform the applicant that the applicant will be required to lodge a security for compliance with the conditions to which the licence, if granted, will from time to time be subject and with the provisions of this Part and of the regulations.

(2)  An instrument under subsection (1) shall –

(a) contain a summary of the conditions subject to which the licence is to be granted; and

(b) if the instrument relates to an application for a secondary licence – specify the rate of royalty determined by the Minister in pursuance of section 41 (1) ; and

(c) contain a statement to the effect that the application will lapse –

(i) if the applicant does not make a request under section 43 (1) in respect of the grant of the licence; or

(ii) in a case where the Minister informs the applicant that he will be required to lodge a security as mentioned in subsection (1) (b) – if the applicant does not lodge that security with the Minister.