Government of British Columbia

Government of British Columbia

September 11, 2008 12:16 ET

Government of British Columbia: Land Titles Sales Prove Strong Investment Interest

VICTORIA, BRITISH COLUMBIA--(Marketwire - Sept. 11, 2008) - September's oil and gas rights sale reached $220 million, building on the record-setting fiscal year total which now stands at over $2 billion, Energy, Mines and Petroleum Resources Minister Richard Neufeld announced today.

"This government's willingness to work with industry on developing the oil and gas industry has heightened investor interest," said Neufeld. "The success of these sales again proves the policies we've put in place have developed a thriving oil and gas industry for British Columbia that benefits the entire province."

The September sale offered 105 parcels in northeast B.C. covering 92,973 hectares, and sold 94 parcels covering 80,401 hectares. The average price per hectare was $2,745.

"Environmental stewardship and sustainability are important to British Columbians, and we are able to support those goals and many other programs including education and health care with the money these sales bring in," Neufeld added. "B.C. has 483 billion cubic metres of remaining raw gas reserves and is the only jurisdiction in North America that has seen those reserves increase for eight straight years."

The key parcels in the sale included:

- Two drilling licenses with bids of over $7,200 and $12,400 per hectare for a total of over $26 million located 25 km west of the Groundbirch Field and 15 km east of Chetwynd.

- Three drilling licenses with bids of between $4,900 and $14,400 per hectare for a total of almost $98 million located in the Western Horn River Basin, east of the Windflower Field, approximately 85 km north of Fort Nelson.

- Five lease bids between $4,700 and $5,400 per hectare for a total of approximately $7.4 million, located at Kobes Field, approximately 50 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 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 Oct. 15, 2008 and will offer 120 parcels covering 75,768 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
    Christine Ash
    Media Relations Manager
    (250) 356-5892 or Cell: (250) 812-3616
    Website: www.gov.bc.ca