The May 2013 petroleum and natural gas rights sale resulted in over $20.9 million in bonus bids, bringing the calendar year total to over $118 million.
The May sale offered 26 parcels in northeast B.C. covering 17,851 hectares. Seventeen parcels were sold with an average price of approximately $1,617 per hectare.
Key parcels in this month's sale included:
- Two drilling licences in the Tower Lake area, approximately five kilometres south of Taylor. Collectively, these two parcels earned more than $4.3 million.
- One large drilling licence and one small lease in the Nig Creek area, about 110 kilometres northwest of Fort St. John. The drilling licence earned more than $10.6 million in tender bonus at a price of $4,755 per hectare. The lease earned more than $758,000 at a price of $2,700 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 three, four or five 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 June 26, 2013, will offer 18 parcels covering 10,042 hectares.
Complete results of the sale are posted at: http://www.empr.gov.bc.ca/Titles/OGTitles/SaleResults/Pages/default.aspx
Ministry of Energy, Mines and Natural Gas