2008 Record Year for Oil and Gas Rights Sales

By 250 News

The December sale of oil and gas rights resulted in a total of over $91.7 million in bonus bids, bringing the 2008 calendar year total to a record high $2.66 billion and building on the fiscal year record of $2.38 billion.

Energy, Mines and Petroleum Resources Minister Richard Neufeld says the sale puts a postive final note on what has been a very successul year for  the Rpovince's oil and gas industry "In these times of global
economic uncertainty, it is comforting that B.C.'s oil and gas industry provides funding that ensures the stability of health care, education and many other programs that sustain the well-being of British
Columbians."

The Dec. 10 sale offered 56 parcels covering 79,022 hectares, and sold  44 parcels covering 60,649 hectares. The average price per hectare was $1,512.

The key parcels in the sale included:

* Two drilling licenses with bids of $4,134 and $7,118 per hectare, respectively, totalling over $19.5 million, located between the Wolverine and Grizzly north fields, approximately 20 km south east of
   Tumbler Ridge.
* A group of three drilling licenses located within the Horn River Basin, about 40 km north of Fort Nelson, generated over $46 million at average prices ranging from $1,721 to $4,279 per hectare.
* A fourth drilling licence parcel within the Horn River Basin, located at the B.C./NWT border, 130 km north of Fort Nelson, earned over $12 million in tender bonus and averaged $4,345 per hectare.
* Over $28,900 per hectare, for a total of over $7.6 million, was received for a lease parcel located beside the Sunset Prairie Field, approximately 30 km south of Fort St. John.

Additionally, this sale sets new records for the highest per hectare amount ($28,974) and highest tender bonus ($7.65 million), breaking the previous records set in July 2008.

The next sale is scheduled for Jan. 14, 2009 and will offer 18 parcels covering 11,938 hectares.

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