Government of British Columbia

Government of British Columbia

February 26, 2009 12:33 ET

Government of British Columbia: February Oil and Gas Rights Sale $17.6 Million

VICTORIA, BRITISH COLUMBIA--(Marketwire - Feb. 26, 2009) -

INFORMATION BULLETIN

For Immediate Release

2009EMPR0006-000250

Feb. 26, 2009

Ministry of Energy, Mines and Petroleum Resources

FEBRUARY OIL AND GAS RIGHTS SALE $17.6 MILLION

VICTORIA - The Feb. 25 oil and gas land rights sale generated $17.6 million in bonus bids, bringing the fiscal year total to over $2.409 billion.

Ninety-eight parcels covering 32,639 hectares in B.C. were offered, and bids were accepted on 89 parcels covering 29,171 hectares for an average price of $603 per hectare.

The key parcels in the sale included:

- Two drilling licences, with bids of approximately $750 and $860 per hectare for a total of over $953,000, located within the Noel gas field approximately 30 km northeast of Tumbler Ridge.

- Six lease bids of between $3,000 and $5,100 per hectare for a total of over $6.5 million located west of the Beg gas field, approximately 115 km north of Hudson's Hope.

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; primary terms of three, four or five years depending on location.

Leases provide the exclusive right to produce petroleum and natural gas; 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 final sale for fiscal 2008-2009 is scheduled for March 25, 2009 and will offer 37 parcels covering 14,666 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
    Media Contact
    (250) 952-0628 or Cell: (250) 213-6934