B.C. Oil and gas land sales bring in close to CAD 25 million

B.C.’s September 2014 natural gas and petroleum rights sale resulted in nearly $24.9 million in bonus bids, contributing to the fiscal year total with over $68 million in total land sales.

The Sept. 10, 2014, sale resulted in twenty six parcels being sold, covering 14,728 hectares with an average price of $1858 per hectare.

Key parcels in the sale included:

• One lease in the Kobes-Altares area, about 40 kilometres north of Hudson’s Hope. This parcel earned more than $8.6 million in tender bonus at an average price of $7,559 per hectare;
• One lease and two drilling licences in the Laprise Creek area, about 150 kilometres northwest of Fort St. John. The lease earned more than $6.1 million in tender bonus at an average of $3,676 per hectare; Collectively, the two drilling licences earned more than $2.3 million in tender bonus at an average price of $2131 per hectare;
• One lease in the Nig Creek area, about 110 kilometres northwest of Fort St .John. This parcel earned more than $1.4 million in tender bonus at an average price of $5180 per hectare.

Drilling licences provide the exclusive right to explore for petroleum and natural gas by drilling wells, and are acquired by the successful bidder at the Crown sale. Primary terms are 3, 4 or 5 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.

Natural gas and petroleum activities play a vital role in B.C. by employing thousands of British Columbians. Revenues from rights sales provide immediate economic benefits, funding social programs and infrastructure development in communities throughout the province.

The next sale, scheduled for Oct. 8, 2014, will offer 27 parcels covering 16,019 hectares.

Press Release, September 15, 2014; Image: gov.bc.ca