Government of British Columbia

Government of British Columbia

October 21, 2010 13:53 ET

Government of British Columbia: $20 Million October Natural Gas and Petroleum Sale

VICTORIA, BRITISH COLUMBIA--(Marketwire - Oct. 21, 2010) -

INFORMATION BULLETIN

2010EMPR0043-001303

Oct. 21, 2010

Ministry of Energy, Mines and Petroleum Resources

$20 MILLION OCTOBER NATURAL GAS AND PETROLEUM SALE

VICTORIA - The October 2010 natural gas and petroleum sale resulted in over $20 million in bonus bids, bringing the calendar year total to $801 million.

The Oct. 20 sale offered 30 parcels covering 20,036 hectares, and sold 29 parcels covering 19,777 hectares. The average price for this sale is approximately $1,035 per hectare.

The key parcels in the sale included:

- A drilling licence in the Favels Creek area, 30 km east of Chetwynd, with a per-hectare bid of over $8,000 for a total of over $8.5 million.

- A drilling licence in the Altares Gas Field, 40 km north of Hudson's Hope, with a per-hectare bid of nearly $4,000 per hectare for a total of over $1 million.

- Three leases south of the Blair Creek Gas Field, 90 km north of Hudson's Hope, with per-hectare bids between $3,120 and $5,008 for a total of over $3 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 Nov. 17, 2010, will offer 14 parcels covering 5,581 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
    Media Relations
    250 952-0628 or 250 213-6934 (cell)
    www.gov.bc.ca