Government of British Columbia

Government of British Columbia

July 17, 2008 11:23 ET

Government of British Columbia: Ministry of Energy, Mines and Petroleum Resources; Unprecedented Land Rights Sale Shatters Records

VICTORIA, BRITISH COLUMBIA--(Marketwire - July 17, 2008) - The July sale of oil and gas rights resulted in a record-breaking total of over $610 million in bonus bids. Yesterday's sale brings the fiscal year-to-date total to a new record of over $1.3 billion, Energy, Mines and Petroleum Resources Minister Richard Neufeld announced today.

"This month's phenomenal sale once again demonstrates that British Columbia is a premiere jurisdiction for oil and gas investment," said Neufeld. "I am certain that these record-breaking results will continue to attract new interest in the coming months."

The July sale offered 149 parcels in northeast B.C. covering 134,196 hectares, and sold 146 parcels covering 132,740 hectares. The average price per hectare was $4,596.

"These unparalleled sales are supporting the ongoing economic health of our province," Neufeld added. "And the revenue from these sales funds vital social programs and infrastructure development in communities throughout British Columbia."

Key parcels in the sale included five drilling licences located 45 km west of Dawson Creek with bids of over $32,500 per hectare for a total of $482.6 million. These parcels include rights to the Montney formation. Three lease bids of nearly $25,000 per hectare for a total of $19.4 million were awarded in the Sunset Prairie area, approximately 25 km south 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 Aug. 13, 2008 and will offer 136 parcels covering 115,879 hectares.

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


1 backgrounder attached.

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.

BACKGROUNDER

2008EMPR0048-001110

July 17, 2008

Ministry of Energy, Mines and Petroleum Resources

UNPRECEDENTED LAND RIGHTS SALE SHATTERS RECORDS

Key records broken by July 2008 land rights sale and other highlights:



New Record/Highlight: Fiscal year total (to July 2008 and counting):
$1.3 billion
Old Record: $1.2 billion set in 2007/08

New Record/Highlight: Calendar year total (to July 2008 and counting):
$1.58 billion
Old Record: $1.04 billion set in 2007

New Record/Highlight: Highest monthly land rights sale: $610 million
Old Record: $441 million set in May 2008

New Record/Highlight: Highest average price for an individual parcel:
$33,649/hectare (drilling licence)
Old Record: $25,384/hectare (drilling licence) set in May 2008

New Record/Highlight: Highest average price for a lease parcel:
$24,690/hectare
Old Record: $22,305/hectare (lease) from August 1980

Current overall average price for fiscal year: $5,158/hectare
Current overall average price for calendar year: $3,881/hectare


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
    (250) 952-0628 or Cell: (250) 213-6934
    Website: www.gov.bc.ca