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| Backgrounder(s) & FactSheet(s): | Backgrounder |
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| Backgrounder(s) & FactSheet(s): | Backgrounder |
VICTORIA – The July sale of
oil and gas rights resulted in a record-breaking total of over $610 million in
bonus bids. Yesterday’s sale brings the fiscal year-to-date total to a new
record of over $1.3 billion, Energy,
Mines and Petroleum Resources Minister Richard Neufeld announced today.
“This month’s phenomenal sale once again demonstrates
that British Columbia is a premiere jurisdiction for oil and gas investment,”
said Neufeld. “I am certain that these record-breaking results will continue to
attract new interest in the coming months.”
The July sale offered 149 parcels in
northeast B.C. covering 134,196 hectares, and sold 146 parcels covering 132,740
hectares. The average price per hectare was $4,596.
“These unparalleled sales are supporting the
ongoing economic health of our province,” Neufeld added. “And the revenue from
these sales funds vital social programs and infrastructure development in communities
throughout British Columbia.”
Key
parcels in the sale included five drilling licences located 45 km west of Dawson Creek with bids of over $32,500 per
hectare for a total of $482.6 million. These parcels include rights to the
Montney formation. Three lease bids of nearly $25,000 per hectare for a total
of $19.4 million were awarded in the Sunset Prairie area, approximately 25 km
south of Fort St. John.
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 and 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.
The
next sale is scheduled for Aug. 13, 2008 and will offer 136 parcels covering
115,879 hectares.
Complete
results of the sale and additional statistics are posted on the Ministry of
Energy,
Mines and Petroleum Resources website: www.em.gov.bc.ca/Subwebs/Landsale/results/default.htm
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contact: |
Ministry of Energy, Mines and Petroleum Resources 250 952-0628 250 213-6934 (cell) |
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For more information on government services or to subscribe to the Province’s news feeds using RSS, visit the Province’s website at www.gov.bc.ca. |
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