Government of British Columbia

Government of British Columbia

October 16, 2008 13:58 ET

Government of British Columbia: October Oil and Gas Rights Sale Generates $151 Million

VICTORIA, BRITISH COLUMBIA--(Marketwire - Oct. 16, 2008) - The October sale of oil and gas rights resulted in a total of over $151 million in bonus bids. Yesterday's sale brings the fiscal year-to-date total to $2.17 billion, Energy, Mines and Petroleum Resources Minister Richard Neufeld announced today.

"As B.C.'s oil and gas industry moves towards the production stage, interest remains solid," said Neufeld. "We continue to be very pleased at the level of investor interest."

The Oct. 15 sale offered 118 parcels in northeast B.C. covering 75,237 hectares, and sold 99 parcels covering 68,429 hectares. The average price per hectare was $2,214.

"With Oil and Gas Week just finishing, we continue to add to our banner year in bonus bid revenue to the province. The industry is showing signs of levelling off now, and with the positive move towards production, we will now start to see direct community growth in jobs, economic benefits and our products moving to market."

The key parcels in the sale included:

- One drilling licenses with a bid of over $8,000 per hectare, for a total of over $9.8 million, located in the Kobes-Altares Field, 70 km west of Fort St. John.

- Seven drilling licenses with bids of between $4,600 and $5,600 per hectare for a total of almost $76 million located in the Western Horn River Basin, and approximately 15 km southeast of the Windflower Field and 80 km north of Fort Nelson.

- Two lease bids of over $20,400 and $27,250 per hectare for a total of approximately $12 million located in the Sunset Prairie Field, which includes the Montney Play, 40 km northwest of Dawson Creek.

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 Nov. 12 and will offer 57 parcels covering 41,793 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