The April 27 sale offered 29 parcels in northeast B.C. covering 9,050 hectares. All parcels were sold, with an average price of $1,281 per hectare.
Key parcels in this month’s sale included four drilling licences in the Farrell Creek area, with a cumulative bonus bid of $2.1 million, and eleven leases approximately 110km north of Hudson’s Hope, which earned almost $8.2 million in bonus bids.
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. 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.
Petroleum and natural gas activities play a vital role in B.C., generating significant wealth and employing thousands of British Columbians. Revenues from rights sales provide immediate economic benefits, funding vital social programs and infrastructure development in communities throughout the province.
The next sale, scheduled for May 25, 2011, will offer 23 parcels covering 23,768 hectares.
- Complete results of the sale are posted on the website of the Ministry of Energy and Mines: http://www.empr.gov.bc.ca/Titles/OGTitles/SaleResults/Pages/default.aspx
Ministry of Energy and Mines