Government of British Columbia

Government of British Columbia

June 19, 2008 13:07 ET

Government of British Columbia: June Oil and Gas Rights Sale Maintains Record Pace

VICTORIA, BRITISH COLUMBIA--(Marketwire - June 19, 2008) - The June 18, 2008 sale of oil and gas rights remains robust with $213 million in bonus bids. Yesterday's sale brings the fiscal year-to-date total to $693.9 million, Minister of Energy, Mines and Petroleum Resources Richard Neufeld announced today.

"B.C. remains competitive. Just last month we set several new records and this month's sale continues to be strong," said Neufeld. "B.C.'s resource potential is proven, and these remarkable results are continuing."

The June 18, 2008 sale offered 99 parcels in northeast B.C. covering 61,482 hectares, and sold 89 parcels covering 58,835 hectares. The average price per hectare was $3,623.

"Much of our continued success can be attributed to our investment, infrastructure and royalty programs," Neufeld added. "This continuing productivity and value of the oil and gas sector shows a strong future for British Columbia."

Key parcels in the sale included 22 within the Horn River Basin - 16 drilling licenses and six leases - covering 33,209 hectares. The total tender bonus received for the 22 parcels was $162.2 million. The overall average price paid within the Horn River Basin was $4,883.31 per hectare.

The 16 drilling licenses covered 31,627 hectares and were disposed at an average price of $5,082.73 per hectare for a tender bonus of $160.7 million.

The six leases covered 1,582 hectares and earned $1.4 million in tender bonus at an average price of $896.51 per hectare.

In total these 22 parcels, plus one parcel within the Montney trend, account for $198.8 million, or approx 93 per cent of the total tender bonus of over $213 million.

The next sale is scheduled for July 16, 2008 and will offer 149 parcels covering 134,197 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

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