(1)  An applicant on whom there has been served an instrument under section 42 (1) may, within a period of 3 months after the date of service of the instrument on him, or within such further period, not exceeding 3 months, as the Minister, on application in writing served on him before the expiration of the first-mentioned period of 3 months allows –

(a) by instrument in writing served on the Minister request the Minister to grant to him the licence referred to in the first-mentioned instrument; and

(b) if the Minister has informed him that he will be required to lodge a security as mentioned in section 42 (1) (b) lodge that security with the Minister.

(2)  Where an applicant on whom there has been served an instrument under section 42 (1) –

(a) has made a request under subsection (1) ; and

(b) if the Minister has informed the applicant that he will be required to lodge a security as mentioned in section 42 (1) (b) , has lodged that security with the Minister –

within the period applicable under subsection (1) , the Minister shall grant to the applicant a production licence for petroleum in respect of the blocks specified in the application.

(3)  A secondary licence shall not be granted to a permittee or lessee in respect of any one or more of the blocks that constitute a location unless –

(a) a primary licence has been granted in respect of a block or blocks forming part of that location; and

(b) the number of blocks in respect of which the primary licence was granted, together with the number of blocks included in that licence by reason of variations of the licence under section 44 , is the permittee's or lessee's primary entitlement.

(4)  Where an applicant on whom there has been served an instrument under section 42 (1) –

(a) has not made a request under subsection (1) ; or

(b) if the Minister has informed the applicant that he will be required to lodge a security as mentioned in section 42 (1) (b) , has not lodged that security with the Minister –

within the period applicable under subsection (1) , the application lapses upon the expiration of that period.

(5)  On the day on which a licence granted under this section comes into force, the permit or lease in respect of the blocks in respect of which the licence was granted ceases to be in force in respect of those blocks.