Government of British Columbia

Government of British Columbia

September 17, 2009 12:01 ET

Government of British Columbia: September Oil and Gas Rights Sale Nets $8.7 Million

VICTORIA, BRITISH COLUMBIA--(Marketwire - Sept. 17, 2009) -

INFORMATION BULLETIN

2009EMPR0014-000353

September 17, 2009

Ministry of Energy, Mines and Petroleum Resources

SEPTEMBER OIL AND GAS RIGHTS SALE NETS $8.7 MILLION

VICTORIA - The September oil and gas rights sale resulted in over $8.7 million in bonus bids, bringing the calendar year to date total to $330.6 million.

The Sept. 16 sale offered 34 parcels covering 15,885 hectares, and sold 34 parcels covering 15,885 hectares. The average price per hectare was $549.

The key parcels in the sale included:

- Three drilling licences and two leases in the Graham River area, approximately 50 km northwest of Hudson's Hope that totalled nearly $4.5 million. Bids ranged from $1,425 to $2,168 per hectare.

- Two leases in the Horn River Basin, 15 km west of the Cabin Gas Field, and approximately 75 km northeast of Fort Nelson, with bids over $1,245 and $1,926 per hectare, for a total of over $837,620.

Drilling licences provide the exclusive right to explore for petroleum and 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 Oct. 21, 2009, and will offer 62 parcels covering 66,837 hectares.

Complete results of the sale are posted on the website of the Ministry of Energy, Mines and Petroleum Resources: www.em.gov.bc.ca/Subwebs/landsale/results/default.htm.

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