Oil and Gas Rights Sales Bring in $114 Million

By 250 News

VICTORIA - The November sale of oil and gas rights resulted in a total of over $114 million in bonus bids. Yesterday's sale brings the fiscal year-to-date total to over $2.2 billion.  

Energy, Mines and Petroleum Resources Minister Richard Neufeld says this is a record fiscal year,  andthe province nowlooks forwad to the transition to the  production stage.

The Nov. 12 sale offered 57 parcels covering 39,094 hectares, and sold 45 parcels covering 24,565 hectares. The average price per hectare was $4,679.

The key parcels in the sale included:

* Five drilling licences with bids of between $5,400 and $14,870 per hectare for a total of over $105 million located in the Farrell Creek and Altares fields, approximately 30 kilometres north of Hudson's Hope.

* Six lease bids of over $3,200 per hectare for a total of over $5.5 million located in the Town field area, 12 kilometres east of Pink Mountain and approximately 120 kilometres northwest of Fort St. John.

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 Dec. 10 and will offer 60 parcels covering 80,193 hectares.

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