The October 2011 petroleum and natural gas sale resulted in over $24.3 million in bonus bids, bringing the calendar year total to over $147 million.

The Oct. 12, 2011 sale offered 27 parcels in northeast B.C. covering 35,565 hectares. Eighteen parcels covering 18,797 hectares were sold. The average price was approximately $1,295 per hectare.

Key parcels in this month's sale included:

• Four drilling licences located in the Jedney-Bubbles area about 100 kilometres northwest of Fort St. John. These four licences, covering 12,943 hectares, earned $19.5 million in total tender bonus bids at an average price of $1,507 per hectare.
• Four leases located about 100 kilometres north of Hudson's Hope in the Blair Creek region. These leases averaged $1,221 per hectare, for a total tender bonus bid of $1.3 million.

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 social programs and infrastructure development in communities throughout the province.

The next sale, scheduled for Nov. 9, 2011, will offer 16 parcels covering 9,499 hectares.

Complete results of the sale are posted at: http://www.empr.gov.bc.ca/Titles/OGTitles/SaleResults/Pages/default.aspx

Contact:

Sandra Steilo
Ministry of Energy and Mines
250 952-0617