Government of British Columbia

Government of British Columbia

May 20, 2010 13:16 ET

Government of British Columbia: $76.6 Million for May Natural Gas and Petroleum Sale

VICTORIA, BRITISH COLUMBIA--(Marketwire - May 20, 2010) -

NEWS RELEASE

For Immediate Release

2010EMPR0022-000606

May 20, 2010

Ministry of Energy, Mines and Petroleum Resources

$76.6 MILLION FOR MAY NATURAL GAS AND PETROLEUM SALE

VICTORIA - The May 2010 natural gas and petroleum sale resulted in over $76 million in bonus bids, announced Energy, Mines and Petroleum Resources Minister Blair Lekstrom. This brings the calendar-year-to-date total to $204.9 million.

"This is very positive news and shows that British Columbia is leading the economic recovery in Canada," said Lekstrom. "Investor confidence and a thriving natural gas and petroleum industry will ensure we continue to create jobs and stimulate economic opportunities especially in northeast B.C."

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 May 19 sale offered 96 parcels in northeast B.C. covering 47,374 hectares, and sold 92 parcels covering 45,671 hectares. The average price per hectare for this sale is approximately $1,677.

The key parcels in the sale included:

  • One drilling licence in the Blueberry West Field, 75 km north of Hudson's Hope, with a per-hectare bid of over $4,500 per hectare for a total of nearly $18 million.
  • Five leases in the Blair Creek Field, 100 km north of Hudson's Hope, with per-hectare bids of $8,888 that totalled nearly $12.6 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.

The next sale, scheduled for June 23, 2010, will offer 117 parcels covering 140,012 hectares.

B.C. continues to be one of the most competitive natural gas and petroleum jurisdictions in North America, thanks to the Province's strong stimulus package. The 2009 calendar year total was just under $893 million, making it the third-best calendar year total in history.

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 250 213-6934 (cell)
    www.gov.bc.ca