Natural Gas and Petroleum Sales Net $85 Million
By 250 News
Friday, April 23, 2010 04:00 AM
The April 2010 natural gas and petroleum sale resulted in over $85 million in bonus bids, announced Minister of Energy, Mines and Petroleum Resources Blair Lekstrom. This brings the calendar year to date total to over $128 million.
“This is good news for the province and shows investor confidence,” said Lekstrom. “We all know capital is fluid, and this sector continues to play an integral part in our economic potential moving forward.”
Natural gas and petroleum activities play a vital role in B.C., generating significant wealth and employing thousands of people.
Revenues from rights sales provide immediate economic benefits, funding vital social programs and infrastructure development in communities throughout B.C.
The April 21 sale offered 30 parcels in northeast B.C. covering 27,074 hectares, and sold 25 parcels covering 24,094 hectares. The average price per hectare for this sale is approximately $3,532.
The key parcels in the sale included:
· Five drilling licences for Montney rights, 20 km east of Chetwynd and directly west of the Favels Creek Field, for a total of nearly $48 million. Bids ranged from $5,072 to $12,157 per hectare.
· One drilling licence east of the Julienne Creek Field, approximately 120 km northwest of Hudson’s Hope with a per-hectare bid of $5,939 that totalled over $15 million.
Drilling licences provide the exclusive right to explore for 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.
The next sale, scheduled for May 19, 2010, will offer 96 parcels covering 47,374 hectares.
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Posted by: He spoke on April 23 2010 11:11 AM