Natural Gas And Petroleum Sale Nets $98 Million

By 250 News

Victoria, B.C.-  The August 2010 natural gas and petroleum sale resulted in over $98 million in bonus bids, far more than expected and more than 2 and  half times the sales amount  in  August of  ’09 which  saw  a total of  $37.2 million dollars.

The calendar year  total  in sales is now over $760 million with four months left to go.

It is unlikely  the sales will top  those of  2008  when  $2.6 billion in sales were recorded for the  year.  Last year, that had dropped back to $892 million.

The Aug. 25 sale offered 81 parcels in northeast B.C., covering 34,349 hectares, and sold 68 parcels covering 31,052 hectares. The average price per hectare for this sale is approximately $3,160.

The key parcels in the sale included:

- Two drilling licences in the Kiwigana River area, 70 km northwest of Fort Nelson, with bids of $5,780 and $9,859 per hectare for a total of over $64 million.

- Twenty-two leases in the Blueberry area, 80 km northwest of Fort St. John, with bids ranging between $2,566 and $5,137 per hectare for a total of over $27 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.

Leases provide the exclusive right to produce natural gas and petroleum. They 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, scheduled for Sept. 22, will offer 71 parcels covering 35,197 hectares.

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