161. The holder of an exploration licence who discovers petroleum or natural gas in commercial quantities shall be entitled to obtain one or more operating leases of such land or lands as he may designate, to the extent of fifty per cent of the territory covered by his exploration licence, provided that:
(a) he applies therefor in writing;
(b) he has complied with the conditions of his licence;
(c) the location, area and shape of the lands designated comply with sections 169 to 172 and the regulations.