Oil and Gas Rights Sale Nets $220 Million

Thursday, September 11, 2008 09:51 AM

Victoria, B.C. - 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.

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.

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.

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Posted on Thursday, September 11, 2008 09:51 AM in News by 250 News

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Comments

Posted by: Bridge on September 11 2008 10:21 AM

Isnt this just wonderfull. I guess if we said NO the yanks would just march in their ice cream type troops.

Cheers

Posted by: swingline on September 11 2008 11:31 AM

The majority of this is natural gas, not petroleum.

Posted by: govsux on September 11 2008 1:49 PM

What no action around PG? Don't tell the politicians and realtors.

Posted by: The_grandinquisitor on September 11 2008 4:30 PM

Wouldn't this be funny if all these sales were for naught....another bre-x scandal.

Posted by: YamaDooPolCat on September 11 2008 8:31 PM

No native issues? I thought First Nation used to drill for gas using wooden stakes. Or was that First National?

Posted by: Palopu on September 13 2008 8:54 PM

So much for the great potential of the Nechako Basin. No one wants to drill there even though the Provincial Government has offered $50 Million to any firm that wants to do some serious drilling.

As a matter of interest the Nechako Basin runs from West of Smithers to South East of Williams Lake BC and it seems that if there is any oil of any consequence, it is in the Williams Lake area, approx 5 miles deep, and in shale, which makes it very difficult to extract.

You can read up on the large oil deposits in Southwest Saskatchewan, North Dakota, and Minnisota (Bakken Oil Basin) if you want to get some idea how oil is extracted from shale, and how expensive and difficult it is.