NEWS RELEASE

For Immediate Release 2009EMPR0003-000018 June 18, 2009

Ministry of Energy, Mines and Petroleum Resources

 

B.C.’S LAND RIGHTS SALES REFLECT INVESTOR CONFIDENCE

 

VICTORIA – The June 2009 land rights sale resulted in $178.4 million in bonus bids, bringing the calendar year to date total to $246.4 million, a positive signal of investor confidence, announced Energy, Mines and Petroleum Resources Minister Blair Lekstrom.

 

“This month’s sale is triple the total sales during our last five months combined and is the ninth largest in B.C. history,” said Lekstrom. “It is a clear indication that there is strong investment interest in B.C.’s burgeoning oil and gas industry.”

 

The June 17 sale offered 31 parcels covering 75,281 hectares, and sold 21 parcels covering 63,611 hectares. The average price per hectare was $2,804.

 

The key parcels in the sale included:

·         Eight drilling licences that totalled over $173 million. Bids ranged from $2,100 to $11,765 per hectare with one parcel bringing in over $62.5 million. These parcels are located in the Horn River Basin approximately 30 km north of Fort Nelson.

 

B.C. has held six sales thus far in 2009 and sold 163,144 hectares, which is 111,719 fewer hectares compared to the same period in 2008. The year-to-date average price remains very strong at $1,510 per hectare.

 

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 July 15, 2009 and will offer 26 parcels covering 59,281 hectares.

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Contact:

Jake Jacobs Public Affairs Officer Ministry of Energy, Mines and Petroleum Resources 250 952-0628 250 213-6934 (cell)

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