Government of British Columbia

Government of British Columbia

November 19, 2009 13:44 ET

Government of British Columbia: November Natural Gas Rights Sales Nearly $20 Million

VICTORIA, BRITISH COLUMBIA--(Marketwire - Nov. 19, 2009) -

INFORMATION BULLETIN
2009EMPR0020-000648

November 19, 2009
Ministry of Energy, Mines and Petroleum Resources

NOVEMBER NATURAL GAS RIGHTS SALES NEARLY $20 MILLION

VICTORIA – The November 2009 land rights sale resulted in nearly $20 million in bonus bids, bringing the calendar year to date total to $720.6 million.

The Nov. 18 sale offered 44 parcels in northeast B.C. covering 21,333 hectares, and sold 31 parcels covering 17,645 hectares. The average price per hectare was $1,130.

The key parcels in the sale included:

  • One drilling licence in the southern portion of the Horn River Basin, about 15 km north of Fort Nelson, totalling more than $6.4 million, with a per hectare bid of about $4,066.
  • Two leases in the eastern portion of the Horn River Basin, approximately 75 km northeast of Fort Nelson. Bids of between more than $2,120 to more than $3,500 per hectare totalled nearly $1.5 million.
  • Three leases in the Montney north of Dawson Creek with bids between $5,308 and $8,662 per hectare for a total of more than $5.4 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 petroleum and natural gas and 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.

The next sale is scheduled for Dec. 16, 2009 and will offer 102 parcels covering 85,070 hectares.

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 Cell: 250 213-6934
    www.gov.bc.ca