The May 2014 natural gas and petroleum rights sale has resulted in $17.1 million in bonus bids, contributing to a calendar-year total of almost $80 million.

The May 21 sale offered 23 parcels in northeastern B.C. covering 12,636 hectares. Nineteen parcels were sold with an average price of $1,488 per hectare.

Key parcels in this month’s sale included:

• Two drilling licences and two leases in the Birley Creek-Umbach area, about 100 kilometres northwest of Fort St. John. Collectively, these four parcels earned more than $14.5 million in tender bonus at average prices ranging from $2,932 to $2,077 per hectare.
• One drilling licence and one lease in the Laprise Creek area, about 140 kilometres northwest of Fort St. John. Collectively, these two parcels earned more than $800 thousand.

Drilling licences provide the exclusive right to explore for petroleum and natural gas by drilling wells, and are acquired by the successful bidder at the Crown sale. 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.

Natural gas and petroleum activities play a vital role in B.C. by 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 18, 2014, will offer five parcels covering 7,468 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 Natural Gas Development
250 952-0617