Government of British Columbia

Government of British Columbia

August 26, 2010 13:00 ET

Government of British Columbia: $98 Million for August Natural Gas and Petroleum Sale

VICTORIA, BRITISH COLUMBIA--(Marketwire - Aug. 26, 2010) -

NEWS RELEASE

For Immediate Release

2010EMPR0032-000996

Aug. 26, 2010

Ministry of Energy, Mines and Petroleum Resources

$98 MILLION FOR AUGUST NATURAL GAS AND PETROLEUM SALE

VICTORIA - The August 2010 natural gas and petroleum sale resulted in over $98 million in bonus bids, bringing the calendar year total to over $760 million.

"This sale, like others this year, is larger than predicted and is more evidence of the confidence the international investment community has in British Columbia's natural gas and petroleum resources," said Energy, Mines and Petroleum Resources Minister Bill Bennett. "This confidence, matched with our rich resources, is powering our economic recovery, creating good jobs for families and revenues for government."

The Aug. 25 sale offered 81 parcels in northeast B.C., covering 34,349 hectares, and sold 68 parcels covering 31,052 hectares. The average price per hectare for this sale is approximately $3,160.

The key parcels in the sale included:

- Two drilling licences in the Kiwigana River area, 70 km northwest of Fort Nelson, with bids of $5,780 and $9,859 per hectare for a total of over $64 million.

- Twenty-two leases in the Blueberry area, 80 km northwest of Fort St. John, with bids ranging between $2,566 and $5,137 per hectare for a total of over $27 million.

Drilling licences provide the exclusive right to explore for natural gas by drilling wells. They are acquired by the successful bidder at the Crown Sale, and primary terms are three, four or five years, depending on location.

Leases provide the exclusive right to produce natural gas and petroleum. They are acquired by the successful bidder at the Crown sale, or selected from permits and drilling licences. Primary terms are five or 10 years, depending on location.

Natural gas and petroleum activities play a vital role in B.C., generating significant wealth and employing thousands of British Columbians. Revenues from rights sales provide immediate economic benefits, funding vital social programs and infrastructure development in communities throughout the province.

The next sale, scheduled for Sept. 22, 2010, will offer 71 parcels covering 35,197 hectares.

Complete results of the sale are posted on the website of the Ministry of Energy, Mines and Petroleum Resources:

http://www.empr.gov.bc.ca/Titles/OGTitles/SaleResults/Pages/default.aspx.

For more information on government services or to subscribe to the Province's news feeds using RSS, visit the Province's website at www.gov.bc.ca.

Contact Information

  • Ministry of Energy, Mines and Petroleum Resources
    Jake Jacobs
    Public Affairs Officer
    250 952-0628 or 250 213-6934 (cell)
    www.gov.bc.ca