August Oil and Gas Rights Sale Nets $37 Million

By 250 News

Victoria, B.C. - The August land rights sale resulted in $37 million in bonus bids, bringing the calendar year to date total to $321.7 million.

The August 12^th, 2009 sale offered 47 parcels covering 22,757 hectares, and sold 41 parcels covering 21,080 hectares. The average price per hectare was $1,759.

The key parcels in the sale included five drilling licences that totalled nearly $15.8 million. Bids ranged from $3,100 to $6,000 per hectare. These parcels are located between 20 km and 50 km east of Chetwynd in the Groundbirch-Brassey area.

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 Sept. 16, 2009 and will offer 34 parcels covering 15,885 hectares.

Complete results of the sale are posted on the website of the Ministry of Energy, Mines and Petroleum Resources: www.em.gov.bc.ca/Subwebs/landsale/results/default.htm.

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