VICTORIA - The June 2011 petroleum and natural gas sale resulted in $21.7 million in bonus bids, bringing the calendar year total to over $66 million.

The June 22 sale offered 26 parcels in northeast B.C. covering 23,055 hectares. Fifteen drilling licences and nine leases were sold, for a total of 24 parcels covering 22,487 hectares. The average price was $968 per hectare.

Key parcels in this month’s sale included five drilling licenses located in the Julienne Creek region, about 140 kilometres northwest of Fort St. John. Cumulatively, these licences covered 3,376 hectares and received tender bonus bids in excess of $11 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 vital social programs and infrastructure development in communities throughout the province.

The next sale, scheduled for July 20, 2011, will offer 24 parcels covering 7,155 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

Media Contacts:

Jake Jacobs
Ministry of Energy and Mines
250 952-0628