BC completes second land sale of 2015

The May 2015 natural gas and petroleum rights sale has resulted in $252,840 in bonus bids.

The May 20, 2015, sale resulted in four parcels being sold, covering 2,488 hectares with an average price of $102 per hectare, according to the British Columbia’s Ministry of Natural gas development.

The highest bid per hectare was a drilling licence in the Stoddart West area, about 40 kilometres northwest of Fort St. John. The parcel earned $224,400 in tender bonus at an average price of $425 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 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.

Revenues from rights sales provide immediate economic benefits, funding social programs and infrastructure development in communities throughout the province.

The next sale, scheduled for June 17, 2015, will offer 15 parcels covering 8,663 hectares.

Image: gov.bc.ca