The February 2013 petroleum and natural gas rights sale resulted in over $4.8 million in bonus bids, bringing the fiscal year total to over $73 million.

The February sale offered 19 parcels in northeast B.C., covering 7968 hectares. 17 parcels were sold with an average price of approximately $788 per hectare.

Key parcels in this month's sale included:

• One drilling licence in the Chowade area, 80 kilometres north of Hudsons Hope. This drilling licence earned more than $1.5 million tender bonus at a price of $2687 per hectare.

• One lease in the Cypress Gas Field, 140 kilometres northwest of Fort St. John. This lease earned more than $535,000 tender bonus at a price of $1892 per hectare.

• For leases in the Nig Creek Gas Field, 110 kilometres northwest of Fort St. John. Collectively, these four leases earned more than $1.6 million in tender bonus at prices from $1261 to $1611 per hectare.

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.

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; primary terms are 3, 4 or 5 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 March 27, 2013, will offer 25 parcels covering 13, 660 hectares.

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

Media Contact:

Sandra Steilo
Ministry of Energy, Mines and Natural Gas
250 952-0617