The July 2015 natural gas and petroleum rights sale resulted in more than $1.3 million in bonus bids.

On July 15, 2015, eight parcels were sold, covering 5,232 hectares with an average price of $256.87 per hectare.

The highest bid per hectare was a drilling licence in the Buick Creek area, about 55 kilometres northwest of Fort St. John. The parcel earned $761,105.80 in tender bonus at an average price of $536 per hectare.

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 Aug. 12, 2015, will offer 10 parcels covering 4,698 hectares.

Complete results of the sale are posted at:
http://www2.gov.bc.ca/gov/content/industry/natural-gas-oil/petroleum-natural-gas-tenure/sales-results-statistics/2015-sale-results

Media Contact:

Sandra Steilo
Ministry of Natural Gas Development
250 952-0617