Government of British Columbia

Government of British Columbia

November 13, 2008 12:16 ET

Government of British Columbia: Ministry of Energy, Mines and Petroleum Resources; November Oil and Gas Rights Sale Generates $114 Million

VICTORIA, BRITISH COLUMBIA--(Marketwire - Nov. 13, 2008) - The November sale of oil and gas rights resulted in a total of over $114 million in bonus bids. Yesterday's sale brings the fiscal year-to-date total to over $2.2 billion, Energy, Mines and Petroleum Resources Minister Richard Neufeld announced today.

"As this record fiscal year continues, the oil and gas industry remains strong, and we're looking forward to the transition to the production stage," said Neufeld. "This has been a banner year for British Columbia, and we are all seeing the benefits of being a resource-rich province."

The Nov. 12 sale offered 57 parcels covering 39,094 hectares, and sold 45 parcels covering 24,565 hectares. The average price per hectare was $4,679.

The key parcels in the sale included:

- Five drilling licences with bids of between $5,400 and $14,870 per hectare for a total of over $105 million located in the Farrell Creek and Altares fields, approximately 30 kilometres north of Hudson's Hope.

- Six lease bids of over $3,200 per hectare for a total of over $5.5 million located in the Town field area, 12 kilometres east of Pink Mountain and approximately 120 kilometres northwest of Fort St. John.

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 Dec. 10 and will offer 60 parcels covering 80,193 hectares.

Complete results of the sale and additional statistics are posted on the Ministry of Energy, Mines and Petroleum Resources website: www.empr.gov.bc.ca/Titles/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 Cell: (250) 213-6934
    Website: www.gov.bc.ca