INFORMATION BULLETIN

2010EMPR0029-000865 July 22, 2010

Ministry of Energy, Mines and Petroleum Resources

 

$53 MILLION FOR JULY NATURAL GAS AND PETROLEUM SALE

 

VICTORIA – The July 2010 natural gas and petroleum sale resulted in over $53 million in bonus bids, bringing the calendar year-to-date total to over $662 million and exceeding expectations for this month’s sale.

 

The July 21 sale offered 37 parcels in northeast B.C., covering 38,608 hectares, and sold 31 parcels covering 36,413 hectares. The average price per hectare for this sale is approximately $1,462.

 

The key parcels in the sale included:

 

·         Rights located south of the Inga Gas Field, 45 kilometres northeast of Hudson’s Hope, with a per-hectare bid of over $3,800 for a total bonus bid over $16 million.

·         Deep rights in the Blueberry Gas Field, 90 kilometres northwest of Fort St. John, with a per-hectare bid of over $2,500 for a total of over $14 million.

·         Deep rights located in the Swan Lake Gas Field, 30 kilometres southeast of Dawson Creek, with a per-hectare bid of over $8,000 for a total bonus bid of over $3.5 million.

 

Drilling licences provide the exclusive right to explore for 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 natural gas and petroleum. 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.

 

The next sale, scheduled for Aug. 25, 2010, will offer 81 parcels covering 34,349 hectares.

 

Complete results of the sale are posted on the website of the Ministry of Energy, Mines and Petroleum Resources: http://www.empr.gov.bc.ca/Titles/OGTitles/SaleResults/Pages/default.aspx.

 

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Media Contact:

Robin Platts Ministry of Energy, Mines and Petroleum Resources 250 952-0623 250 213-6451 (cell)

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